Tenant Security Deposit

[Alexander Ignacio]

Hi, i am a new real estate investor and I just purchased my first duplex i plan to house hack. When inspecting the vacant side after the previous tenant moved out, I saw a small tear in the carpet. Ive attached the picture below. Is this deductible from the tenants security deposit? I'm not sure when the carpet was installed, but the duplex was built in the 1980s. If it is deductible, how do I find out how much should be deducted? Should i deduct base on replacing the entire living room carpet or just the damaged space? I plan to remove the entire carpet and put a different type of flooring, so I'm unsure if I should actually deduct anything at all.

thank you and im excited to begin my real estate journey!

[William Whitley]

Good morning, Alexander,

The purpose of the security deposit in part as it relates to needed repairs left behind by the tenant is to assist the property owner in covering repairs that are not considered normal wear and tear. The question then becomes, is this normal wear and tear? A follow up question is, would the carpet have been replaced anyway after the tenant vacated? Certain things are normal wear and tear, like repainting a unit prior to leasing to a new tenant. Sometimes carpet replacement is deemed normal, especially if the tenant occupied the unit for several years. 

The other thing that you should probably do is take a look at the lease. What does the lease say about this situation? If it is vague or doesn't address it at all, then two things come to mind. First, you probably need a better, more detailed lease, and second, you might want to err on the side of caution and simply release the security deposit in full, assuming the tenant otherwise has fulfilled their obligations of the lease.

I hope that helps.