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Updated about 10 years ago on . Most recent reply

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Bryan N.
  • Investor
  • Hampton Roads, VA
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Evaluating and documenting security deposit charges

Bryan N.
  • Investor
  • Hampton Roads, VA
Posted

I'm curious how other landlords handle this.  After a move out walk through is completed with or without the tenant, how do you: 

1) Evaluate what to charge them for?  How about if you do the work yourself?

2) What not to charge them for?

3) How do you document it?

I've seen bits and pieces of this subject on BP, but I don't recall seeing anything comprehensive like an "ultimate guide" etc.

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Lynn McGeein
  • Real Estate Agent
  • Virginia Beach, VA
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Lynn McGeein
  • Real Estate Agent
  • Virginia Beach, VA
Replied

It can depend on your local landlord tenant rules as well.  I was advised long ago, and we pretty much stick to it with our rentals in Raleigh, that 7 years for carpet, 3 years for paint, for instance.  If you install new carpet and the next year it needs replacement, charge them for it.  If it's been 5 years and it needs to be replaced, charge them a portion of the cost using the invoice as a guide.  We hired a painter at our last turnover as they were there 2 years and it already needed a full paint job, so he listed the hole in the wall he had to repair and the excessive damage to certain rooms and split the bill accordingly, then charged the tenant's deposit for their part.  When it's extremely filthy, we hire a cleaning crew, pay the normal rate fee ourselves and charge the tenant the excessive rate (usually $50 more).  I've been advised that landlords charging hourly labor for their own work is hard to get by a judge, but having receipts from professionals usually passes.  If it's in good shape, we turn it over ourselves quickly and move on, charging tenants for any materials that we feel are over and above (like our carbon monoxide detectors were missing, so we charged them for new ones).  If it's excessive, we hire out, get receipts, and charge it to the tenant's deposit.        

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