Tenant threatening to take me to court over deposit. What to do?

[Nick Brubaker]

TL;DR:

Decided it was fair to keep deposit of $770 for 5-year tenant for no cleaning, large scratches on floor and trim, hooks in walls, satellite dish installed on roof, and large stain on deck.  He sent threatening email demanding all of it back or he will take me to court for it plus "punitive damages."

Hi everyone,

I have a sfh property in Atlanta.  This has been my first and only rental.  The tenant lived in the house for 5 years.  He signed a comprehensive lease and a thorough move-in report.  A comprehensive move-out photo report was also conducted.  The security deposit amount is $770.  I recently contracted with a property manager that has handled the tenant's exit and conducted the move-out inspection.  I don't know exactly where the line should be drawn between wear and tear and chargeable damages.  The PM provided me with with a deposit reconciliation statement of costs that I will need to pay for and that they would typically charge to the tenant.  This amounted to about $1,600 which I have already paid to have painting and repairs done.  I told the tenant I would not charge for the amount over $770 but that none of the $770 would be returned.  I had talked to my PM (who has much more experience) prior to making that determination and they were sure it was quite fair.  The damages include:

No deep cleaning - he didn't even vacuum 

Numerous adhesive and puncture hooks on the walls 

Trim that was substantially dinged and scratched up in a number of places

Some large scratches in the floor in one room

A large orange stain on the deck

And a satellite dish installed on the roof

The tenant followed-up with a threatening email telling me that he disagrees with all charges and that he expects the full amount refunded by Nov. 30th or he will file in small claims court for this and also punitive damages.  I don't know the best course of action in response.  I think it is completely unfair and unreasonable for him to demand the full amount back and he is trying to threaten me and intimidate to do so.  So just in principle I have half a mind to let it go to court (or hopefully just call his bluff).  At the same time, between cost for a lawyer, my time, and the stress the other part of me just says give him the money and move on.  The punitive damages part of his threat beyond the deposit itself makes me nervous as well (not sure I have reason to be), but that is the point of him including that.

What advice do you all have?

Other possibly pertinent info:

He was a family friend (not any more!)

He is a police officer

His father is a retired public defender (attorney)

I have given him a massive discount all along - $770 was the original rent and it was only at $880 by the end for a 3/1 inside the perimeter!

There were some leaks in the roof that occurred during the 5 years which I remedied, but never repaired the peeling paint on the ceilings (not charging him for this of course)

He moved his girlfriend-now-wife in for over a year without telling me even after I had said if he she does move-in she would need to sign the lease and complete a background check

He did pay rent on time and never missed

I handled move-in with a thorough paper report of existing damages and video documentation of the whole house

The new PM who I contracted with to help with the turnover and this exit process took a good amount of photos documenting the condition

He and the PM walked the house the day after move out and I followed up regarding the deposit 19 days after move out

The lease state the property should be returned to move-in-ready condition and that the deposit can be applied otherwise