Tenant security deposit deductions: soft things like time and labor?

Question

Currently doing repairs from a tenant departure. Shocking how little regard people have for a brand new house that doesn't belong to them. Life lessons!

One of the allowed deductions beyond material damage is wear tear beyond what would be considered normal. In this case there is tremendous "damage" to walls beyond wear and tear. An astounding volume of scuff marks and abrasions, nail holes, a ferw actual holes, it is beyond comprehension. Way beyond normal. House was spotless when they moved in. So I the owner am having to paint a large portion of house.

My question is, can I deduct a calculated amount based on my time and work to do this labor? I am not hiring it out, but doing a lot myself. There is a busted fireplace remote, which I have to replace. So I have to contact retailers, manufacturers, figure it all out in addition to simply purchasing a replacement. Painting walls takes hours and days. All valuable time. Essentially billing myself as the worker to complete these tasks beyond material purchases. Is there any allowance for time and labor for the owner completing repairs, to bill to the security deposit as well?

(Someone undoubtedly will ask why I am not hiring it out, and there is a whole story going on here, this is what is happening, so no need to ask thank you.)

Thanks for any input

Theresa Harris · Answer

Quite a few tenants are rough on homes, but so are some home owners. You can't charge for your time. If you want to deduct money for cleaning, hire a cleaning company (which I know you said you don't want to do). Mr Clean eraser does wonders to scuff marks on walls. Try that before you think about having to paint.

take photos of everything before and after.

Judy Martinez · Answer

Hi.

I hope you do not mind, but I wanted to chime in the Magic Eraser.

I own a cleaning company. I have researched, bought, and used all sorts of products to test effectiveness. Most of the products I order are to sanitize, but eco-friendly, not only for the environment, but I do not care to burn my lungs with chemicals or get cancer.

However, there are there are three items I always have: Dawn, vinegar,  and Mr Clean Magic Erasers.  Depending on how bad the walls are, you are absolutely right, magic erasers vab perform miracles.

Christopher Davis · Answer

Actually the remote is proving a bit more involved than that. I was able to locate the correct one through a local vendor, but it still took two hours to go pick it up. I also have to set it up by replacing a whole bluetooth part in the fireplace itself. It's rather confusing, so I will contact the retailer again so they can walk me through the set up. More time. All because the tenant busted the thing for some reason.

Kenneth Garrett · Answer

When I have a tenant sign a lease they also sign a document for the cost of repairs when the lease ends.  Normal wear and tear is painting.  Actual holes in the walls are additional.  You have to follow your state laws on this.  The lease documents should include all information.  I also provide a move in sheet the tenant fills out if there are any defects in the house.  I use this to evaluate damages.  Take pictures of all damages and send them a record of all damages and deductions from security deposit.  I do not send them pictures only the final document and a return of their security deposit if anything is left after the deductions.

Tim Baldwin · Answer

Your state laws control, but the loss value to the materials will be based on fair market value. Labor must also be what market value is for the skills and expertise needed for the work being done. You may need to get those values from an expert in the field so you have good grounds for the value claimed on the deposit. Always document the evidence to support your claim.

Nathan Gesner · Answer

It's important to understand the court will not award you compensation for your personal time. If you hire a contractor, you can charge for labor and materials. If you do the work yourself, they will only compensate you for materials. The good news is that the tenant is unlikely to take you to court if you have clean documentation of the damages and work necessary.

The time required to research and order a replacement remote? I doubt that would stand up in court. It literally takes 5-10 minutes to find a replacement, or you could call a local vendor, ask them to find the device for you, and pay what they charge, which is marked up to cover their research time.

Keep in mind you can only charge depreciated value. If the remote is five years old, you shouldn't charge them full price for a brand-new remote.

Greg Scott · Answer

You should be able to charge back what is fair and reasonable, however, you may be asked to justify your charge-backs.  Document everything. If you are going to charge for your time, you should track your hours and then assign a reasonable. I wouldn't necessarily give the tenants all that detail and copies of receipts, but you will need to have it if your assessment is disputed.

FWIW, for severe damage, many landlords will stop at the maximum allowed by small claims court, because going to a different court becomes expensive.

Tenant security deposit deductions: soft things like time and labor?

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