Landlord newbie: How to handle damages / refunding deposit

Landlord newbie: How to handle damages / refunding deposit

Houston, TX · Member since 2010 · 50 posts · 6 votes

I became a landlord somewhat by accident and know next to nothing about how it works. l own a home and rented out my spare rooms to three other girls while I lived here. An opportunity presented itself this summer and I moved out of town, thus becoming a landlord to the same girls I lived with. The dynamic has been interesting for sure but with a few bumps we've made it work. When they move out in June 2017 I am going to get a property management group to take over the lease to lessen my headache and establish a more professional type of setup. They have been living here on average 3-4 years so small damages have mounted up, thankfully nothing major. I meant for this to be a house for me to live in so the finishes I put in are quite nice, not what you usually see in rentals. I have a few questions on how to handle repairing these things: 

1. How should I split up the repairs? I received three separate deposits for the three tenants. I lived here also for most of the time of their lease, making four of us total.  I planned on splitting any repairs four ways in the common areas (living room, dining room, kitchen) equally amongst the four of us. Any damages in their individual rooms would be covered solely by who inhabited it.  Would this be the most fair/best way to do it? 

2. What is considered something to be repairs to be taken out of a deposit vs normal wear and tear? Deep cleaning of the entire house and carpet cleaning will for sure be coming out of the deposit, but these are standard move out charges. For example, nail holes and scratches on the floor from dragging furniture are things that will come out of the deposit. The appliances are quite dirty as well as the white cabinets in the sink/bathroom. Hopefully there is a service willing to really deep clean. What about smaller things like grout in the showers needing to be touched up? Mold on the ceilings above the shower from not using the vent in the bathroom? Slow draining sinks due to them being full of hair? Cleaning out of dryer vents since they haven't been in years? Yard maintenance due to leaves not being raked/grass being mowed? Anything else to be thought of? 

3. If I am going to rent out the house to a new tenant once they move out should I fix these things right away if they are only to get damaged again from the next tenant? Would it be wiser to put this money aside for the future to fix it all at once? Fixing something large like a hole in the wall or broken oven, yes, but floor scratches? Would it be worth it if you have to keep fixing?  I would be using this money for repairs but perhaps not at that time. Is this legal? I might want to live here again someday and won't want to come back a house that's been rode hard and put up wet for lack of better terms. 

Thanks for your responses. I look forward to June when I won't have to be as hands on! 

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  • Patti RobertsonBusiness Member
    Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
    9y

    First I would check your landlord tenant law to see if it specify how to handle deposits of roommates. In our state the code specifies this, so yours might.  Second, check your lease to see if it defines what maintenance and repairs the tenant is responsible for.  If it's in your lease it can't be disputed. I think it's hard to hold a tenant accountable for anything outside of their own room for the period that you were a roommate there, since in our state, roommates are held jointly liable for repairs. It would have been better to establish a new condition report from the time you moved out and they became independent renters.  In our state you can only charge for repairs you actually make.  You can't charge them for what you think something is going to cost then hold their money to spend it after the next tenant leaves.  It sound like you should spend an hour reading your state code.  You should really be familiar with it anyways.

  • Houston, TX · Member since 2010 · 50 posts · 6 votes
    9y

    @ Patti - Thank you! 

    Looks like this is what I need: 

    https://arkansasrealtors.com/wp-content/uploads/2015/08/2014-Landlord-Tenant-Handbook-FINAL.pdf                                                                                                           Is there anyone I could use as a reference besides a lawyer? The lease does specify that the tenant will be responsible for any damages that occur during the time they reside at the property and the deposit will be given back within 30 days. For example, I came to the house last month and noticed several deep scratches in the wood that were not there beforehand from moving a couch. I thought it was very fair to fix these things and split the cost equally amongst myself and them but I will look more into the code. Seems like the most correct way to do it is fix the things that need repairing then have the PM do a detailed move in move out checklist from now on.

  • Houston, TX · Member since 2010 · 50 posts · 6 votes
    9y

    Also, to clarify I don't want to pocket their money and not fix the things. That would be dishonest. Just didn't know when would be the best time to fix them if damages would keep occurring due to new tenants. I have a lot to learn!

  • Flagstaff, AZ · Member since 2016 · 44 posts · 60 votes
    9y

    Move in/Move out checklists are magical.

    I am about to house hack my first property with two roommates, and I will be following my local landlord and tenant regulations, along with a bunch of tips and tricks i have learned from BP and reading books. 

    To me, I am fixing all discrepancies with my home before I rent to anyone. This is my personal preference, but the quality of your rental is going to dictate the quality of your tenants. I'd rather invest a bit up front, get my hands dirty, and have a nicer place than the places around me. This method avoids headaches down the line.

    In summation, understand your local laws very well (cannot stress this enough). If the roommates are liable, use their deposit to get your place cleaned/fixed up well.

    New tenants are almost always going to damage your place in some way shape or form. I would not defer maintenance until the future. Take care of it now.

  • Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    Question you may need to address is " can you legally rent your house out by the room ",  if your not living there to people not related to each other. Check with your local city code so your in compliance. Do you need a rental license.. ?? 

    As far as repairs for other than normal wear and tear. If you didn't have photo's of before or had a check sheet of what was condition of property when they moved in, it will be hard to prove what your charges for damages are. Any costs related to damages need receipts for repairs. You may not be able to justify any damages without proof of condition at move in.

    You need to follow your state landlord laws 

  • Realtor/Investor · Richmond (Houston), TX · Member since 2014 · 109 posts · 50 votes
    9y

    It looks like you are in Texas so be sure you stay in compliance with chapter 92 of the Texas Property Code. You can find a link at texaspropertycode.org.  There are time limits on the process that you want to be sure you agree to. Also review your lease form you used for any particulars the lease may detail. 

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