Decision on replacing carpet due to heavy smoker tenants.

[Lisa K.]

I am trying to make a decision on what to replace the carpet with, damaged due to heavy smokers. 

Since it was carpet before and I am wanting to do away with carpet upstairs. How would I go about to deduct from tenant's deposit. Do I get an estimate on the carpet and planks flooring then pay the different?

To avoid any disputes should I keep it the same?

What do you guys think?

[Isaac Pepper]

@Lisa Kiu

Dont replace with carpet again just to avoid disputes. You will be in the same situation again after another tenant or two.

I recommend taking the depreciation amount remaining of the carpets life according to the IRS Publications. IRS pubs 527 and 946 should be a good place to start. Then take the amount cited and deduct it from the tenants deposit. This gives you a concrete explanation for your tenants (and a judge if needed) of why you took the amount you did.

From here replace with the desired flooring that wont hold smells (LVP, Laminate etc.)

Hope this helps!