Tenant security deposit

[Balaji Varadharajan]

Hi all,

I have a couple of questions related to security deposit reconciliation and return. 

The tenant vacated last month after staying there for a little over two years. They have largely been good - paid rent on time, no issues generally. Below are a couple of disputed charges. 

1. What is considered "normal" wear and tear? I have to remove the nails on the walls, add fillers, touch up and repaint some part of the home. Is it normal to charge a portion of the total paint job, to the security deposit? If so, what would you suggest as the %?

2. The disposal in the kitchen is damaged and doesn't work. The tenant said the disposal broke just before they vacated, and they did not have time to request repair. We do have the clause in any standard lease, paragraph 18, that the tenant has to comply with the procedure of requesting repair if the landlord has to bear the cost of repair. In my case, I found out after they vacated, while inspecting the home.

Which of these can I cover with security deposit?

Thanks in advance.

[James Mc Ree]

You can probably find case law supporting both sides for the same topic if you were to go to court.

I would consider rooms with a few nail holes in the walls for pictures and such to be normal wear and tear unless your lease specifies otherwise. Many holes, large holes, etc might not be normal, but you would be arguing on the meaning of "many" and "large."

You may have the tenant on a technicality in that they didn't report the broken disposal and can't claim they didn't have time since they had time to pack their belongings and move out. A counter would be the disposal was broken regardless of whether or not they reported it. The key for me is, "Why is the disposal broken?" If it was normal use, then it is for me to repair. It's for the tenant to repair if it was abused.

I would try to come to an agreement with the tenant. If that doesn't work, you could charge them a reasonable fee for both issues and just let them sue you in small claims court if they think it is worth it. A quick conversation with an attorney is probably the best next step.

[Andrew DeShong]

If it were me, them being good tenants and the fact I'd probably be repainting anyway, I'd just return the deposit.  The disposal most likely is just plugged and the breaker popped and needs to be reset. There's a little button on the bottom.  If not I'd just put a new one in and eat the cost. What's a new disposal, $200?  I'd just fix it and move on. Maybe I'm too nice.

[Lynn McGeein]

@Balaji Varadharajan. If walls are damaged enough to add extra cost to paint job, you can have contractor itemize that part as additional charge and deduct from security. If disposal is jammed by foreign object that shouldn’t be in a disposal like money, beer caps, kids toys, have it stated on invoice and charge security deposit. Include copies of invoices in your itemized list showing deductions. I do the same for cleaners, if it’s extra cleaning charge for greasy kitchen or dirty tubs etc., then have it itemized and charge those amounts that are over and above normal.

[Nathan Gesner]

Quote from @Balaji Varadharajan:

I provide move-out instructions that spell out my expectations, including a small table of wear-and-tear items. A copy of these instructions will be included in the book I hope to publish this summer.

I allow a few small nail holes without charge because that is ordinary for any occupant. If they are large holes, or large in number, then I charge to fill the holes and touch up paint.

They failed to report the disposal. Even if it broke two days before they left, they could have left a note, emailed, texted, or called to report it. I would charge them a depreciated value for a replacement. A disposal could last ten years. If yours is five years old and a new one costs $160, then I would charge them 50% of the cost or $80. I would not charge install fee.

[Andrew B.]

"Wear and tear" refers to what happens when you use a property under normal conditions. It is normal to hang a modest amount of items on the wall. It is not normal to hang hundreds of items on the wall. Unless there is so many nail holes that it effects the aesthetics of the wall, it is normal wear and tear. 

Paint is only expected to last about 5 years. If your paint lasted 5 years or more, dont charge your tenant for painting. 

If the disposal broke due to negligent use, you can charge the tenant for replacement unless it lasted longer than it was expected to. If it broke due to normal use, you cannot charge them. This is true for every appliance and fixture. The fact that they didn't tell you is irrelevant. I never use garbage disposals but my guess is a 5 year is reasonable. All that being said, just remove the disposal. It's just another item that requires maintenance. 

[Alyssa Wright]

Quote from @Andrew DeShong:

If it were me, them being good tenants and the fact I'd probably be repainting anyway, I'd just return the deposit.  The disposal most likely is just plugged and the breaker popped and needs to be reset. There's a little button on the bottom.  If not I'd just put a new one in and eat the cost. What's a new disposal, $200?  I'd just fix it and move on. Maybe I'm too nice.

 I agree with you here! 

Especially if the nails/holes in the walls were no bigger than lets say a dime, it would consider it standard wear and tear with a tenant living there for 2 years. 

Unless the dishwasher has something seriously wrong that exceeds the $150-200 mark it might be better to just eat the cost.

[Gustavo Delgado]

you are going to need to repaint anyway to make it ready to lease. The disposal is minor issue to bicker over, fix it and get the place ready for the next tenant

[Jacob Stevenson]

I would return deposit.  I think getting in a habit of keeping deposits sets you up for stress in the future.  When I started, deposits covered a lot of issues and there was always a battle with the former tenants and complaints.  Now, its the opposite and I don't waste time arguing over $100 and have referrals consistently.  

[Kiefer Cheney]

Quote from @Nathan Gesner:

Quote from @Balaji Varadharajan:

I provide move-out instructions that spell out my expectations, including a small table of wear-and-tear items. A copy of these instructions will be included in the book I hope to publish this summer.

I allow a few small nail holes without charge because that is ordinary for any occupant. If they are large holes, or large in number, then I charge to fill the holes and touch up paint.

They failed to report the disposal. Even if it broke two days before they left, they could have left a note, emailed, texted, or called to report it. I would charge them a depreciated value for a replacement. A disposal could last ten years. If yours is five years old and a new one costs $160, then I would charge them 50% of the cost or $80. I would not charge install fee.

I have one rental property for about half a year no  so I haven't had to deal with any move out procedures or getting a place "rent ready" since my house hack is a new build but how did you create your "move out instructions" and are you supposed to paint the whole inside every time a tenant moves out?

[Nathan Gesner]

Quote from @Kiefer Cheney:

I'm happy to share if you connect with me and send a request for my move-out instructions.

[Wale Lawal]

@Balaji Varadharajan

To reconcile and return security deposits, differentiate between normal wear and tear and damage. Normal use covers small things like nail holes, but harm has big issues like marks and burns. If a tenant is careless and causes harm, they should pay some of the cost for minor paint fixes and get rid of broken items. For paint touch-ups, the charge is less based on how long the paint should last. Tenants who don't tell about needed fixes might have to pay for removing damaged items. Aim for simple words and keep sentences short and varied, using very common words when you can. Stick to the original word count.

Good luck!