Any Leeway with Damage Deposit?

Question

Hello! My husband and I bought a property a few months ago with inherited tenants. A tenant is moving out next month. The previous landlord did not make any notes on the condition of the unit when this tenant moved in. Are we obligated to return the full deposit? She’s a pretty messy tenant, so I expect there will be a lot of work to do after she leaves. But without having it documented, are we out of luck? There is also nothing in the previous owner’s lease about moving out or cleanliness.

Darius Ogloza · Answer

Certainly, you are entitled to deduct the cost of trashing their junk, if they leave unwanted personal property there. Same if they admit to causing some damage.  No harm in asking the tenant to clean and otherwise make repairs, but, honestly, you have no basis to withhold if the tenant claims that the damage pre-existed him/her or that the property was in even worse condition when he/she moved in.  I once had a buyer try this on a good (clean) tenant I had had who decided to move a few weeks after I sold the building.  I threatened to sue on her behalf as the tactic struck me a pretty scummy.

Patricia Steiner · Answer

I can share what I would do...I would let her know that you need to schedule a final walk-through of the unit with her to be done once her contents are removed so you can "process" her security deposit.  Tell her that the expectation will be that it is clean, all trash/contents/food items removed, and placed in the exterior trash bins with no furniture/boxes/items left on the property (translation: don't dump your junk in the yard).  Any damage including holes due to tv mounts/wall hangings will need to be fully repaired.  This will ensure that you as the landlord/owner can return her full security deposit without offset. Anything less will result in damages assessed against it.

And, that leaves it up to her.  Lease or no lease, it sets your expectation for her departure. I recommend sending it via text or email so you have a copy of your "exit requirements" should you need to offset the deposit.

Hope this helps...

Matt Ziegler · Answer

Without having good documentation it is hard to be able to establish your basis for holding the deposit.

This can be a good lesson on how you can document move in and move out condition going forward. Pictures/Videos and signed documents are key....

How long have they lived in the unit?  Based on how they leave the property you may be able to deduct cleaning costs , but you may be better off getting them gone, pay the deposit and move on.