Security Deposit Deductions?

Question

Hello fellow BP followers. I have a tenant moving out and she has caused a little bit of damage to the property, does anyone have any tips to make sure I am taking the proper/legal steps and deducting the correct amount for the repairs.  Any help is appreciated.

Aaron K. · Answer

Hopefully you have a move-in/ move-out checklist, if not then you know for for the next tenant.  Either way you document everything, you have a reputable vendor complete the work and send an itemized list to the tenant of what was taken out of their deposit as soon as you possibly can.  Some states vary on requirements but it is good practice.

The big tip here is don't do DIY repairs because you aren't saving yourself any money, (the security deposit is paying for the repairs) and you are opening yourself up to all kinds of challenges from the tenant.

Account Closed · Answer

Check the security deposit laws where the property is located.  Usually, you can charge reasonable labor charges for cleaning, although, it's always easier if you just have a receipt.  Some states require you to prove receipts, etc.  It's too hard to answer the question generally.  State and local laws are what you need to know.

Justin Buller · Answer

Thank you for the reply's guys! much appreciated!

Nathan Gesner · Answer

Document heavily with pictures and/or video prior to occupancy and after departure. Document again after cleaning/repairs are made.

Always hire professionals to handle cleaning/repairs. If you do it yourself as the Landlord, the court typically will not reimburse you for your time.

Be fair and honest. If the paint was old already and the tenant damaged just one wall, don't charge them for painting the entire room. If the carpet was ten years old and beyond it's normal life expectancy, charge the tenant 1/10 of replacement cost or possibly even less.

Know the law. If you're required to provide a copy of receipts or an itemized list of deductions, do it. If you have 30 days to complete the work and provide documentation/refund, don't miss the deadline.

Security Deposit Deductions?

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