Tenant threatening legal action over security deposit

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Tenant threatening legal action over security deposit

Account Closed
New to Real Estate · Portland, OR · Member since 2020 · 17 posts · 4 votes

Hi Bigger Pockets -- I have a situation I'm not sure how to deal with, am hoping for your help. For context, I am a new investor who is househacking my first property; at this time I do not have a lawyer, and the house is in my personal name (rather than an LLC).

I have former tenants who recently moved out, and they took it upon themselves to "fix" the pinholes where they hung pictures. They accomplished this by painting large, discolored squares in multiple areas, of every wall, of every room (with only a couple exceptions). The color difference was not subtle, I've attached some images for reference (links below) -- it was like this through the entire house, total of 3 bedrooms, a kitchen, a living room, and a hallway. We attempted to match the color for touchups, but failed to do so (the house was recently purchased, original paint samples unavailable). My former tenants also left a decent amount of cleaning to be done, ~10 hours worth. I received a formal bid of $3,200 to fix the paint, and then did all the work myself.

All things considered, my tenants received back ~1.6% of their $2,250 security deposit. The charges included A) $110 worth of remaining utilities, B) $835 for cleaning ($235 carpet + $600 for labor), and C) $1,270 for paint damages ($295 for supplies + 30 hours of labor at $32.50/per). Along with their disposition of deposit, I included and referenced Bigger Pockets' Vacating and Cleaning Instructions and Itemized List of Common Deductions (both of which were provided to tenants ahead of time), images of the damages, an invoice for the carpet cleaning, receipts for the paint materials, the page of their signed lease saying they are not to paint without permission, and finally the formal $3,200 bid we received. 

My former tenants were predictably less than enthused, and they are now threatening legal action -- they claim that because I could not provide them with the appropriate color, the paint is not their responsibility. There is obviously nothing in the lease which defines it as my responsibility to provide accurate paint samples upon move out, but they don't see it that way. Naturally. 

I am not sure how to proceed -- aside from this situation, these were quality tenants. They paid rent early, took care of the property, etc. -- they were great at living in the rental, they just weren't great at moving out. As far as the cleaning, I believe we simply have different standards for what qualifies as "move-in ready". As far as the paint, these tenants genuinely spent a lot of time and money *trying* to fix the situation; they just unfortunately made it much, much worse than if they had done nothing at all. 

I am 2nd guessing how much I charged them for the cleaning, and am also considering a small refund on the paint based on remaining materials. At this point, I honestly just want them to go away. Is it worth sending them more money, or is that a slippery slope which will just leave them asking for more? Should I hold strong to my claim that their painting violated the lease agreement, and that I would have been fully justified to hire the work out and send them an invoice? 

Any advice you have would be much appreciated -- thanks BP, you're always there when I need ya! 

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Joe Martella
Rental Property Investor · Cherry Hill, NJ · Member since 2015 · 626 posts · 495 votes
4y

Whoa.  You charged them for every nickel.

First, you need to go to your lease and see what it says.  Then you have to figure out what is normal wear and tear.  

If this goes to court, they are going to look at how long the tenants are going to live there and what is reasonable. 

First, lets go to cleaning.  $835 for cleaning is a ripoff.  I get cleaning of a whole house done for about $200 - $250.  When tenants move out, I don't necessarily charge them for cleaning if they made an attempt to provide the unit in the broom swept condition.  

As for the carpet, you cannot charge them for 100% of the carpet.  The carpet depreciates in value every year.  

Spackling, first, the tenants sealed up the holes.  I personally think that it is unreasonable to charge people to seal up holes from pictures.  Most rolls of the paint cover the holes up.  It is a $10 bucket of spackle and some landlords charge hundreds.  I personally think it is abusive.  

Paint - you can't tell me that you wouldn't repaint the unit for a new renter.  If they just painted a small area over the holes, then you can easily paint over them if you can match the paint.  We are talking about "pinholes" which are mostly sealed up by painting alone.  Are you chagrining them for your labor?  If so, you aren't allowed to do so.  The$3,200 quote seems like the entire unit is getting a fresh coat of paint.  If you can't match the existing paint, how can you expect the tenants to do so?  Looks like you are trying to get a free paint job of the unit if it goes to a judge. 

The only thing I would have taken from them was for the utilities.  Your pictures can't be viewed, but they are irrelevant based on your description.  Remember, turnovers cost money, that is why you want the tenant to stay as long as possible.  

I can tell you that if my tenants left the place in 100% amazing condition, I will still do spot painting if not painting the entire unit, having the place cleaned and the carpets steam cleaned.   Note that I usually paint the unit.  Paint is low cost and easy, but annoying, to do.  A fresh paint smell is similar to that of a new car smell for me - especially when I am showing the unit.

I don't understand why some landlords nickel and dime the tenants that are moving out.  Remember, tenants talk to other tenants, too. 


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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    You can't charge for your own labour. Did they ask for paint for touch ups?  Even with pinhole sized holes, you can often just fill it and wipe it down and don't need to repaint-if there are only  few spots.  It is the black hole that is visible.

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Account Closed:

    If I had $1 for every time a tenant threatened to sue, I wouldn't need to invest in real estate.

    Stick to the law and the lease, document everything, and ignore their threats. When you are finished, send them an itemized statement with evidence of the need for cleaning and repairs and a deadline for payment. If they fail to pay, send them to collections or write it off.

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  • Account Closed
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 17 posts · 4 votes
    4y

    Hi Theresa -- thank you for your response! When you say I can't charge for labor, what about the "general labor" and other such topics quoted on (attached / link below) Itemized List of Common Deposit Deductions? What about getting a bid for a maid service, and referencing that?  

    https://docs.google.com/docume... 

    These were not pinhole sized holes, that wouldn't have been an issue at all -- they painted large squares on every wall. 

    Thanks again for your help! 

    0Reply
  • Account Closed
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 17 posts · 4 votes
    4y
    Quote from @Nathan Gesner:
    Quote from @Account Closed:

    If I had $1 for every time a tenant threatened to sue, I wouldn't need to invest in real estate.

    Stick to the law and the lease, document everything, and ignore their threats. When you are finished, send them an itemized statement with evidence of the need for cleaning and repairs and a deadline for payment. If they fail to pay, send them to collections or write it off.


    Thank you Nathan! I appreciate your advice, half of me completely agrees. The other half is worried that (as a beginner) I've neglected an important step somewhere, or failed to do something legally necessary. For example, I didn't get a bid on the cleaning needed -- so are the cleaning charges something they could contest? It definitely seems like they could be blowing smoke on the legal threats, but that's not the sort of thing I want to take lightly. Thank you again for your help! 

    0Reply
  • Joe Martella
    Rental Property Investor · Cherry Hill, NJ · Member since 2015 · 626 posts · 495 votes
    4y

    Whoa.  You charged them for every nickel.

    First, you need to go to your lease and see what it says.  Then you have to figure out what is normal wear and tear.  

    If this goes to court, they are going to look at how long the tenants are going to live there and what is reasonable. 

    First, lets go to cleaning.  $835 for cleaning is a ripoff.  I get cleaning of a whole house done for about $200 - $250.  When tenants move out, I don't necessarily charge them for cleaning if they made an attempt to provide the unit in the broom swept condition.  

    As for the carpet, you cannot charge them for 100% of the carpet.  The carpet depreciates in value every year.  

    Spackling, first, the tenants sealed up the holes.  I personally think that it is unreasonable to charge people to seal up holes from pictures.  Most rolls of the paint cover the holes up.  It is a $10 bucket of spackle and some landlords charge hundreds.  I personally think it is abusive.  

    Paint - you can't tell me that you wouldn't repaint the unit for a new renter.  If they just painted a small area over the holes, then you can easily paint over them if you can match the paint.  We are talking about "pinholes" which are mostly sealed up by painting alone.  Are you chagrining them for your labor?  If so, you aren't allowed to do so.  The$3,200 quote seems like the entire unit is getting a fresh coat of paint.  If you can't match the existing paint, how can you expect the tenants to do so?  Looks like you are trying to get a free paint job of the unit if it goes to a judge. 

    The only thing I would have taken from them was for the utilities.  Your pictures can't be viewed, but they are irrelevant based on your description.  Remember, turnovers cost money, that is why you want the tenant to stay as long as possible.  

    I can tell you that if my tenants left the place in 100% amazing condition, I will still do spot painting if not painting the entire unit, having the place cleaned and the carpets steam cleaned.   Note that I usually paint the unit.  Paint is low cost and easy, but annoying, to do.  A fresh paint smell is similar to that of a new car smell for me - especially when I am showing the unit.

    I don't understand why some landlords nickel and dime the tenants that are moving out.  Remember, tenants talk to other tenants, too. 


    9Reply
  • Account Closed
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 17 posts · 4 votes
    4y

    Thank you @Joe Martella! I definitely appreciate this response, it's a lot to consider. I wish the images worked, they help add some perspective -- I did not intend to nick and dime them, just want to get my place returned to rent-ready condition.

    0Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    4y
    Quote from @Account Closed:

    these were quality tenants. They paid rent early, took care of the property, etc. -- they were great at living in the rental, genuinely spent a lot of time and money *trying* to fix the situation; they just unfortunately made it much, much worse than if they had done nothing at all. 

    Pay them back all except the utilities and carpet cleaning already. They were good tenants that tried. 

    When I receive notice, I send a letter about the move-out process and what's expected. 

    It says to not attempt to spackle or paint.  Lesson I learned long ago. 

    Say you're new and you're sorry along with the check you give them.   This is part of your tuition learning to become a fair landlord. 

    8Reply
  • Greg R.
    Investor · Dallas, TX · Member since 2016 · 887 posts · 1k+ votes
    4y

    Regarding the paint, I couldn't see the pics. Looks like your Google Drive links are set to private. In the scenario where you don't have a color code, best thing that I've found to do is go to the inside of a closet or some other obscure/ non-visible area and cut a small section out of the drywall. Take that sample to Sherwin Williams and they should be able to match both the sheen and the color. Patching the hole is a very easy DIY fix or a handyman can do it for very little. 

    In any event, 30 hours to fix mismatching squares of paint on the walls seems very unreasonable to me. With the method above this is a one day job. I'd have my handyman knock this out for about $200-300 including all materials and be done in a day. 

    If your lack of knowledge resulted in you performing 30 hours of labor, that's on you.

    $835 seems extremely high for cleaning. Do you have pics of how bad they left it? 10 hours of cleaning for $835 is $83.5 per hour, which is way above "normal" rates. Was the place completely thrashed? To justify that kind of cleaning fee I would expect the level of filth to require a 3/4-person crew an 8 hour day to get the place clean. 

    From the info you provided, if this went to small claims court and was before a mediator/ arbitrator I'm assuming they would side with the tenants and find you to be unreasonable.  

    4Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y
    Quote from @Account Closed:

    Hi Theresa -- thank you for your response! When you say I can't charge for labor, what about the "general labor" and other such topics quoted on (attached / link below) Itemized List of Common Deposit Deductions? What about getting a bid for a maid service, and referencing that?  

    https://docs.google.com/docume... 

    These were not pinhole sized holes, that wouldn't have been an issue at all -- they painted large squares on every wall. 

    Thanks again for your help! 


     Where I am you can charge if you paid someone to do it, but not if you did it.  If you did it, you can only charge them for supplies.

    2Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y
    Quote from @Greg R.:

    Regarding the paint, I couldn't see the pics. Looks like your Google Drive links are set to private. In the scenario where you don't have a color code, best thing that I've found to do is go to the inside of a closet or some other obscure/ non-visible area and cut a small section out of the drywall. Take that sample to Sherwin Williams and they should be able to match both the sheen and the color. Patching the hole is a very easy DIY fix or a handyman can do it for very little. 

    I found taking off a plate from a switch or electrical outlet and taking paint from the part of the wall covered by that also works.  Never thought of the inside of a closet-especially the wall where the door hangs on the inside as most people won't see that (unless it is a walk in closet).

    2Reply
  • Account Closed
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 17 posts · 4 votes
    4y

    @Greg R. I did that exact Sherwin WIlliams route, even used the faceplate method that @Theresa Harris recommends -- the color was close, but not close enough. I've attached an image below, hopefully this one will work -- the lower left square is the attempted fix, after multiple attempts at Sherwin Williams. The issue was unfortunately too extensive, and a wall-to-wall repaint was required.

    I went through the move-out letter process that @Steve Vaughan recommends, but they did not really follow the instructions provided -- or at least, not to the standards I would have liked. I did not specifically mention they should not spackle or paint (the lease does), but I will definitely make sure to do so moving forward. 

    There seems to be a general consensus that the cleaning charges were too high -- thank you all for your input there, very much appreciated!

    0Reply
  • Account Closed
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 17 posts · 4 votes
    4y

    Here are some paint examples

    0Reply
  • Greg R.
    Investor · Dallas, TX · Member since 2016 · 887 posts · 1k+ votes
    4y
    Quote from @Account Closed:

    @Greg R. I did that exact Sherwin WIlliams route, even used the faceplate method that @Theresa Harris recommends -- the color was close, but not close enough. I've attached an image below, hopefully this one will work -- the lower left square is the attempted fix, after multiple attempts at Sherwin Williams. The issue was unfortunately too extensive, and a wall-to-wall repaint was required.

    I went through the move-out letter process that @Steve Vaughan recommends, but they did not really follow the instructions provided -- or at least, not to the standards I would have liked. I did not specifically mention they should not spackle or paint (the lease does), but I will definitely make sure to do so moving forward. 

    There seems to be a general consensus that the cleaning charges were too high -- thank you all for your input there, very much appreciated!

    Thanks for sharing @Account Closed. I'd consider a different paint store if the matches are that bad. Perhaps even home depot. The sample can't be too small either, it needs to be at least 6" all the way around. At Home Depot they will put the matched paint on the sample and dry it. When they get the match correct you aren't able to see where they put the matched paint, it all blends together. Lazy/ uninterested employees won't get it right. There's also a feathering technique you need to use to blend it in. I just did this exact technique in one of my STRs about 6 months ago, came out flawless. My wife who is a perfectionist was unable to tell that I patched a big hole in the wall and other imperfections from old curtains. 

    In any event, if you're unable to get a match for whatever reason why would that be the tenants responsibility? Seems like they did the best that they could given you were unable to provide them with the color code of the paint.

    1Reply
  • Account Closed
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 17 posts · 4 votes
    4y

    @Greg R. -- is it the landlord's responsibility to provide paint samples upon move-out? The lease I have doesn't say so, although it does say the tenants are not to paint without written approval. 

    Thanks very much for your advice on the paint fix, that'll be helpful moving forward -- it's unfortunately too late in this case, but I definitely appreciate the information provided. 

    0Reply
  • Greg R.
    Investor · Dallas, TX · Member since 2016 · 887 posts · 1k+ votes
    4y

    I'm really not sure if it's a landlord responsibility or not. That might be dictated by state law. Perhaps someone more familiar with OR landlord/ renter laws would know that answer. 

    What's pretty universal is that landlords only charge tenants a fair and appropriate rate for repairs. If they left the screw/ nail holes in the wall and didn't attempt a repair, there's no way you'd be able to charge them $1,270 for the repairs. It would be your responsibility to match the paint. 

    2Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    As noted, you don't get to charge them for your labor. That never seemed quite fair to me, especially since I usually did ALL my own work, but that's the way it is....

    1Reply
  • Account Closed
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 17 posts · 4 votes
    4y

    @Greg R. If they had left holes in the wall, I 100% would not have charged them. Holes are not an issue, but the paint they added could not be left unaddressed. Every wall, of every room, looked like the images provided (above). 

    Based on the $3,200 paint bid I received, my perspective is that I worked real hard to get everyone down to $1,270. I also feel my tenants violated their lease in this matter, and that I'm not really obligated to send them anything. I'm inclined to agree with @Nathan Gesner -- but I also recognize they attempted to resolve the situation themselves, and that I was unable to provide the color sample. Again, I don't feel I violated the lease by not doing so, but that is still at least worth mentioning.

    At this point, I am moving towards sending them a partial refund -- it's just a matter of determining what amount is fair. Thank you all again for your help and advice, it's very much appreciated! 

    0Reply
  • Greg R.
    Investor · Dallas, TX · Member since 2016 · 887 posts · 1k+ votes
    4y

    Ok, so if they did nothing and left holes in the wall, you'd have to patch them yourself and spot-paint. You'd be in the same exact scenario of not being able to match the paint. Yet, you're trying to pass the buck to them because you're unable to match the paint.  

    Up to you to handle it as you want, but I find your actions to be unreasonable. I agree w/ @Steve Vaughan, tell them you're still learning and that you apologize for the trouble. Cut them a check and move on, this is the price you pay for the lesson. 

    5Reply
  • Tim Herman
    Member since 2018 · 2k+ posts · 1k+ votes
    4y

    @Account Closed My question: Is Oregon a triple damage state. If you withheld improperly can the tenants receive triple compensation? If you withheld 2k improperly then you could get hit with 6k in damages. My next question is how old was the paint? Over 5 years it would be the landlord responsibility. Most states don't allow landlords to charge labor only actual materials and only that percentage based on the age of the depreciated item. 

    1Reply
  • Account Closed
    OP
    New to Real Estate · Portland, OR · Member since 2020 · 17 posts · 4 votes
    4y

    @Greg R. Appreciate your continued replies! I'm not trying to pass the buck onto anyone, I just want to be compensated for property damages which required immediate action to resolve. I feel that hole patches qualify as "wear and tear", but discolored walls do not. Repainting at a time of my choice should definitely be on my dime, no argument there -- but having to paint right now was not my choice, the original paint was in otherwise good condition.

    @Tim Herman I live in Washington, apologies for the confusion; it's right across the river from Portland, so that's BP's default city. To my knowledge, WA is a double compensation state -- not quite as bad, but certainly enough for your point to stand. Unknown on the age of the paint, but it was definitely <5 years. 

    I was unaware of the labor situation, I find that...confusing. What is the point of a move-out letter, if you cannot charge for the fees described? Regardless, that's a failure on my part and beyond the scope of this forum -- definitely appreciate everyone bringing this to my attention. 

    0Reply
  • Chris G.
    Member since 2021 · 132 posts · 37 votes
    4y

    @Account Closed

    I don't see any issue with this, you got a formal bid for getting the painting done which was more then you did it for yourself, I don't see that being an issue at all if it was necessary. Utilities they should have paid for so that was fine taking from the sd. I saw some mention the cleaning is a ripoff but honestly we pay around $300-600 of a 2-3 bedroom condo to be cleaned so I think that's normal, the carpet is hard to say since they usually age in general I know for our lease we require the tenants to deep clean it if there are stains or smell. I personally don't see an issue with doing the work yourself or hiring a vendor as long as it's of decent quality it shouldn't matter. 

    1Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    4y

    I would just hold off and see what happens. You did the right thing and everyone threatens to sue.

    I've had so many tenants threaten legal action. I've had people say "I'll call my attorney!" and they can't even pay an $800 rent bill. Attorneys are $500 an hour...

    I don't have an attorney on retainer and I own 38 rental properties. I doubt these people do and will back down when they hear the cost of pursuing this.

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  • Gary L Wallman
    Rental Property Investor · Beavercreek OH · Member since 2018 · 422 posts · 970 votes
    4y
    Quote from @Account Closed:

    Hi Bigger Pockets -- I have a situation I'm not sure how to deal with, am hoping for your help. For context, I am a new investor who is househacking my first property; at this time I do not have a lawyer, and the house is in my personal name (rather than an LLC).

    I have former tenants who recently moved out, and they took it upon themselves to "fix" the pinholes where they hung pictures. They accomplished this by painting large, discolored squares in multiple areas, of every wall, of every room (with only a couple exceptions). The color difference was not subtle, I've attached some images for reference (links below) -- it was like this through the entire house, total of 3 bedrooms, a kitchen, a living room, and a hallway. We attempted to match the color for touchups, but failed to do so (the house was recently purchased, original paint samples unavailable). My former tenants also left a decent amount of cleaning to be done, ~10 hours worth. I received a formal bid of $3,200 to fix the paint, and then did all the work myself.

    All things considered, my tenants received back ~1.6% of their $2,250 security deposit. The charges included A) $110 worth of remaining utilities, B) $835 for cleaning ($235 carpet + $600 for labor), and C) $1,270 for paint damages ($295 for supplies + 30 hours of labor at $32.50/per). Along with their disposition of deposit, I included and referenced Bigger Pockets' Vacating and Cleaning Instructions and Itemized List of Common Deductions (both of which were provided to tenants ahead of time), images of the damages, an invoice for the carpet cleaning, receipts for the paint materials, the page of their signed lease saying they are not to paint without permission, and finally the formal $3,200 bid we received. 

    My former tenants were predictably less than enthused, and they are now threatening legal action -- they claim that because I could not provide them with the appropriate color, the paint is not their responsibility. There is obviously nothing in the lease which defines it as my responsibility to provide accurate paint samples upon move out, but they don't see it that way. Naturally. 

    I am not sure how to proceed -- aside from this situation, these were quality tenants. They paid rent early, took care of the property, etc. -- they were great at living in the rental, they just weren't great at moving out. As far as the cleaning, I believe we simply have different standards for what qualifies as "move-in ready". As far as the paint, these tenants genuinely spent a lot of time and money *trying* to fix the situation; they just unfortunately made it much, much worse than if they had done nothing at all. 

    I am 2nd guessing how much I charged them for the cleaning, and am also considering a small refund on the paint based on remaining materials. At this point, I honestly just want them to go away. Is it worth sending them more money, or is that a slippery slope which will just leave them asking for more? Should I hold strong to my claim that their painting violated the lease agreement, and that I would have been fully justified to hire the work out and send them an invoice? 

    Any advice you have would be much appreciated -- thanks BP, you're always there when I need ya! 

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     Richard,

    As a landlord with 150+ doors, I can tell you I've seen about everything when it comes to move out conditions. You seem to have documented everything well. Your charges seem in-line. You should give credit for depreciation of paint. We expect to re-paint every 3 years, so if a tenant left after 1 year and the home needed to be painted we would charge 2/3rds of the cost.

    While your cleaning seems high at face value, it depends solely on the scope of work. I just had a military couple move out. They said they "ran out of time and left a few things behind". Well it's going to take a 3 man crew and 3 to 4 dumpsters to complete, dirty diapers and all. Cleaning will run well into the thousands.

    Try to be fair as possible, but stick to your guns when you are owed damages. Most people would never pay a lawyer to sue you.

    Gary

    1Reply
  • Jeff CopelandBusiness Member
    Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
    4y

    There's obviously some great info already in this thread, and there are also two competing opinions. 

    What this all boils down to is What will a judge consider reasonable if the tenants take you to court?

    It's almost universally agreed that nail holes from hanging pictures is normal wear and tear. The fact that you don't know the paint color and can't get a good color match is on you as the landlord. Whether or not the tenants had patched the holes and tried to touch up, you'd still have had to come behind them and do the same thing, and you would have had the same problem. So I agree with some of the other posters that this isn't the tenants' fault (and I think a judge might agree). 

    In my experience, color matches rarely work. When you don't know the exact paint color and sheen, you will eventually end up repainting the entire wall, room, or house (which, BTW, is why I'm a big fan of a standard paint color and materials list for property managers and landlords). 

    Likewise, $825 for cleaning is unreasonable. 

    What a lot of people miss is the fact that underlying all of this is what your state laws say about landlord-tenant disputes. Many states (such as Florida, where I am, and apparently Oregon, where you are) say that whoever loses in court not only pays the damages, but also pays the other parties legal fees. 

    When you couple that with the fact that there are plenty of attorneys who specialize in these cases (security deposit disputes are one of the most litigated areas of landlord tenant law) and would take this case on an contingency basis if they think they can win, because they can charge hefty fees that you as the landlord will end up paying if you lose in court. The tenants do not need to spend a dime to sue you, which is contrary to the advice many of the other posters are giving you. 

    So the real risk isn't having to return the $2250 deposit. It's having the judge say you were a little heavy handed and you owe the tenants $200 (or whatever amount). And you'll now be paying for the tenants' $10,000 lawyer. 

    Here's a great video from an attorney on this very subject. 

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  • Tim Miller
    Rental Property Investor · Laurel, MD · Member since 2016 · 383 posts · 382 votes
    4y

    @Account Closed You are doing things correct. As others have said, make sure that all future tenants know what they have to do on move out. Document everything! Yes you can charge for your own labor but you need to state what your labor cost are up front.

    Repainting wouldn't have been needed if the tenant had left the walls alone. Yes, they are responsible for paying to have the unit repainted now.

    Cleaning charge is not to high. We charge $35 an hour to clean any units ourselves. It's clearly stated in our Listing of Fees that all tenants receive.

    Going forward make sure future tenants receive a listing of all fees and that they sign it as part of the lease signing. Again, document everything and keep up with local laws.

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