Are you allowed to use the security deposit to "turn" property?

Question

Hi BP!

Once a tenant leaves and you have to get your property "fix-up" ready for a new tenant, what are you allowed to use the previous tenant's security deposit for?

Are you legally allowed to use it to fix "wear & tear" items (spot painting, fixing damaged flooring, cleaning, etc..)? Or is it only to be used on major items (holes in the wall, etc..)?

Thanks!

Nathan Gesner · Answer

You can generally use the deposit for cleaning, repairs, and unpaid balances on rent, utilities, etc.

You need to educate yourself on what is "ordinary" wear-and-tear and what is considered abuse and neglect. Generally speaking, there will always be some wear-and-tear on a rental, just like there is on your personal home. Putting a few small nail holes in a wall is ordinary; putting four lag bolts into a wall or 100 staples into the window trim is not ordinary.

I have no idea where your investment is, so I can't give you State-specific assistance.

Travis Timmons · Answer

My approach to landlording, and life and work in general, mostly boils down to "When given the opportunity to be jerk, don't." If your tenants paid you on time and generally took care of the place, give them the full security deposit back. I do add a cleaning fee on to my leases to pay for a cleaner after they leave, but a security deposit needs to be returned in full if they took care of the place.

Jeremy Horton · Answer

It's not to be use for general wear and tear

It's to be used for damage - ie; anything damaged that the tenant caused during their stay.

If your carpet is 10 years old and the tenant stayed there for a year (or even 10) - barring any stains/rips (actual damage caused by the tenant) and you decide to replace it because it's old and worn out you shouldn't use the security deposit for that. If it's been damaged - rips/stains etc, then you can use the security deposit

Dena Puliatti · Answer

@Steven Barr @Nathan Gesner  Yes, Stephen.  Your breakdown is correct.  Nathan, my understanding from the attorneys that I have worked with is that "clean" at the end of a lease is "broom-swept condition." I like to have the home deep cleaned before a tenant moves in.  It makes for a happier start of the relationship.

Eliott Elias · Answer

You can't spend the security deposit unless you tell the tenant they are not getting it back and the damage done justifies them not receiving it. You can spend on whatever you want once it's settled

Denise Evans · Answer

It depends on what your lease says. If the tenant agreed in the lease that some of the security deposit can be used for a turning fee, then you can use it for that. If the lease is silent on that issue, then the deposit can be used only for damages. Damages are what you could recover in court if you sued the tenant. That means unpaid rent, late charges and fees. It also includes damage to the property beyond normal wear and tear.

Bob S. · Answer

NO, normal wear and tear is just that, normal,,,,,

Steven Barr · Answer

@Nathan Gesner super helpful thank you!!

Are you allowed to use the security deposit to "turn" property?

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