How Much Should I Charge Tenants for Damaged Carpet?

[Matt Lindstrom]

Hi BiggerPockets Community,

I bought a duplex in late 2020. One side was already occupied by tenants who had moved in around late 2019. They just moved out, and the carpet in their unit has significant damage — cat stains, paint spills, random stains, and a ripped-up spot from an office chair. While the carpet still feels cushiony and looks good, it clearly needs to be replaced due to the damage caused by the tenants.

I’m planning to install LVP flooring, which was quoted at $4,700. I understand LVP is more expensive than carpet to install, so I'm not looking to pass that full cost onto the tenants. I don’t know when the carpet was originally installed, but it was there before they moved in, and the previous owner wasn’t helpful when I asked for the installation date/year.

I’m considering prorating the carpet over a 10-year lifespan and charging for the remaining 3 years — roughly $1,410. I still hold their $1,800 security deposit. Does this seem like a fair and reasonable approach?

Thanks in advance for your input!

[David Peschio]

Carpet damage resulting from tenant actions, such as cat urine stains, paint spills, or tears from furniture, is typically considered beyond normal wear and tear and can be charged to the tenant.

Carpets are generally depreciated over a 5 to 7-year period, depending on the property's use and the carpet's quality. If the carpet was installed before the tenants moved in and has sustained significant damage—including cat stains, paint spills, and a ripped area from an office chair—it's justifiable to attribute these issues to the tenants' actions, rather than normal wear and tear. Therefore, you may charge the tenants for the remaining 3 years of the carpet's expected lifespan, approximately $1,410, using straight-line depreciation.

Additionally, if the subfloor has been damaged—perhaps due to pet accidents or other issues—you may charge the tenants for the necessary repairs. Subfloor damage is considered beyond normal wear and tear and can be deducted from the security deposit.

If cat urine has affected the subfloor, it's advisable to prime the subfloor before installing luxury vinyl plank (LVP) flooring. This step helps seal in odors and prevent them from resurfacing.