Security deposit itemized expense
Rental Property Investor · Dayton, OH · Member since 2022 · 103 posts · 49 votes
Security deposit itemized expense
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Real Estate Agent · Memphis · Member since 2026 · 545 posts · 315 votes
1moI'd verify the Ohio rules before putting my own hourly labor on that itemization. I'd have no problem doing the work myself, but whether I can deduct a reasonable labor charge from the deposit is a separate question from whether I can deduct materials, hauling, unpaid rent, or documented damage. I'd take detailed before-and-after photos, save every receipt, and keep a record of the work performed, then confirm what Ohio allows for owner-performed labor before sending the final statement. I wouldn't farm the work out just to generate an invoice, but I also wouldn't assume I can pick an hourly rate and charge it against the deposit.
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- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes1mo
Most jurisdictions do not accept owners hourly wage. Easiest is to get written estimates from third party vendors, which are generally sufficient if detailed adequately. Be sure to separate legit tenant charges from the normal wear and tear or other owner responsibility.
Of course, this all assumes you have proper move in/move out photos and documentation.
- Real Estate Agent · Memphis · Member since 2026 · 545 posts · 315 votes1mo
I'd verify the Ohio rules before putting my own hourly labor on that itemization. I'd have no problem doing the work myself, but whether I can deduct a reasonable labor charge from the deposit is a separate question from whether I can deduct materials, hauling, unpaid rent, or documented damage. I'd take detailed before-and-after photos, save every receipt, and keep a record of the work performed, then confirm what Ohio allows for owner-performed labor before sending the final statement. I wouldn't farm the work out just to generate an invoice, but I also wouldn't assume I can pick an hourly rate and charge it against the deposit.
- Investor · San Diego · Member since 2020 · 92 posts · 60 votes1mo
@Robin Evans @Richard F. and @Jim Johnson already gave you the right instinct on the labor rate question, so I will not repeat it. What I would add is that in Ohio the deadline and the penalty are the parts that actually cost landlords money on these, and they are easy to trip over while you are heads down doing the work.
Ohio Revised Code 5321.16 is the section to read. The short version as I understand it: once the tenancy ends and you have possession back, you have 30 days to deliver the itemized statement and any balance to the tenant's forwarding address, and the tenant has to give you that address in writing. If a court later finds you wrongfully withheld, the exposure is generally twice the amount wrongfully withheld plus the tenant's attorney fees. Please confirm the current text with an Ohio attorney or your local landlord association before you send anything. I am not a lawyer and these statutes get amended.
Practical order I would work in:
Apply the deposit to unpaid rent first, then to documented damage. Unpaid rent is your cleanest deduction and nobody argues wear and tear on it.
Photograph and date everything before you touch it, including the trash and the abandoned furniture, and keep the dump receipts and weight tickets. Hauling and disposal are real out of pocket costs with paper behind them.
Split the statement into three buckets: unpaid rent, tenant caused damage, and turnover work you would have done regardless. Full repaint after a long tenancy often belongs in the third bucket, and putting it in the second is what invites the dispute.
If the total exceeds the deposit, still send the itemization inside the window and pursue the balance separately. Blowing the deadline can cost you deductions you were entitled to.
On your own hours, even where you cannot charge a labor rate against the deposit, keep the time log anyway. It is useful in small claims for proving the scope of what was actually done.
Do you have the tenant's written forwarding address yet? That detail changes how the 30 day clock runs and is worth nailing down before you mail anything.
- Property Manager · Orlando, FL · Member since 2025 · 14 posts · 3 votes1mo
This is one of those situations where I’d be very careful about assuming your own labor can automatically be charged against the security deposit.
The rules can vary quite a bit by state, especially around whether an owner can charge for their own time versus actual third-party invoices. I’d first document everything with photos/video, keep receipts for materials and disposal costs, and make sure you follow your state’s exact security deposit notice and timing requirements.
I’d also separate unpaid rent, actual damage beyond normal wear and tear, cleaning, trash removal, and abandoned property rather than lumping everything together.
Before putting an hourly labor rate on the disposition, I’d confirm that with a local landlord-tenant attorney or your state’s statutes. Security deposit rules are one area where a technically reasonable charge can still become a problem if it isn’t handled exactly the way the law requires.
- Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes4w
Quote from @Robin Evans:
Hello all hope you all had a great week! So our tenants moved out and left a huge mass to us. Overgrown lawn, a lot of trash and personal furniture and stuff left behind. The house will need extensive cleaning and painting, repairs, etc.. And they owe us rent too but they expect their deposit back! We plan to send them a letter listing all the cleaning/repair work needed. If we do all the work instead of farming it out, can we put the hours we spend and hourly rate per hour on the letter as the itemized expenses? Or do we have to farm it out and use the vendor 's billed amount? Thank you for your input!
First thing I'd do is check the state law regarding if you can include your own hourly rate as part of the charge.
2nd thing I recommend is you take pictures of anything left behind, then store them someplace before throwing them out & send a letter to the tenant giving them x amount of days to pick their stuff up. You could potentially wait to send the letter by combining it with the certified letter that you'll need to send out documenting the damage and how much you spend to correct the damage, while taking it out of their deposit. I'd do it all in one certified letter.
- Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes4w
Only one point remains unanswered: what to do if you do not receive the ex-tenant's new address.
My practice was to send the security disposition letter --both regular mail, and certified, to the tenant's address (your rental). If/when it is returned to you, DO NOT OPEN! Keep it sealed and place in that property folder.
Check your local and state regs to be sure--I'm not a lawyer, and laws get amended and changed.
- Rental Property Investor · Dayton, OH · Member since 2022 · 103 posts · 49 votes3w
Thank you so much for all of your input! We have learned so much and will consult an attorney as well! We did take a lot of photos and have NOT received a written notice from the tenants about their new address yet. They did send it via text but that actually doesn't count per the rules. But we are planning to send the letter within the time window any ways. We see quite a bit trash in the furnace duck too and plan to get it cleaned by a vendor. That should be counted as deductions from security deposit instead of normal wear and tear, right?
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes3w
Depends... is this just some minor debris knocked into a floor vent? Or system wide from removing a filter rather than regular changing? Most importantly, do you have proof of move in condition...paid receipt from a duct cleaning service, or photos showing internal of all vents?
- 3wJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Robin Evans:
Hello all hope you all had a great week! So our tenants moved out and left a huge mass to us. Overgrown lawn, a lot of trash and personal furniture and stuff left behind. The house will need extensive cleaning and painting, repairs, etc.. And they owe us rent too but they expect their deposit back! We plan to send them a letter listing all the cleaning/repair work needed. If we do all the work instead of farming it out, can we put the hours we spend and hourly rate per hour on the letter as the itemized expenses? Or do we have to farm it out and use the vendor 's billed amount? Thank you for your input!
Glad you asked, Marc! You can potentially charge for work you perform yourself, but I’d be careful because security deposit rules vary by state. In general, I’d document everything just as thoroughly as if you hired a vendor: before-and-after photos, each specific task, materials and receipts, hours worked, and a reasonable labor rate that you could support based on local rates. I’d also separate actual tenant-caused damage and excessive cleaning from normal wear and tear. For example, hauling away furniture and trash they abandoned is much easier to justify than automatically charging them for a full repaint simply because the unit needs fresh paint. Unpaid rent may also be a valid deduction depending on your state’s rules. Before sending the final accounting, I’d check your specific state’s security deposit requirements, especially the deadline and documentation rules, because those can make a big difference if the tenant disputes the deductions. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews
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