How much would you deduct from Security Deposit

Question

Not sure what happen but it seems like the tenant took the cover or the screen on the security system. It's not even in use. Can I deduct it from the security deposit? And how much? First time dealing with it.

Thanks

Chi

Thanks

Chi

Thomas S. · Answer

You may deduct the cost to replace the cover. You need to provide the tenant a copy of the receipt. If you can not replace the cover you purchase a new camera and bill the tenant for the cost of the camera.

You may not deduct anything from a tenants deposit that you do not have a actual receipt proving you spent the money.

Lesley Resnick · Answer

The other question is how old is the device?  There is a useful life and it can get sticky in how much the tenant should be on the hook for.  If the device was 20 years old and not sure if works, I am not sure legally you can get much.  If you choose you can try and charge any amount you want, it would be expensive and time consuming on both parties part to resolve this in court.

My suggestion is remove the thing and just move on.  It is a cost of doing business.

Gail K. · Answer

John must have been sued a number of times based on his usual responses to such questions.

If you wish you may contact the security system company to find out what a replacement cover/screen will cost you and take that amount out your former tenants security deposit.   Of course keep a record of the actual cost of this for your files.

This is not normal wear and tear.

Gail

JR T. · Answer

@Thomas S. In Maryland we regularly bill our labor for any tenant responsibility issues at $55/hour. That rate is higher than we pay for the work to be done. It's our policy and we haven't run into issues. Going into court well prepared is important - we show up with a clear recitation of the facts, lots of pictures and professional invoices.

BiggerPockets is 100% the content produced by a bunch of random people brainstorming about real estate. Probably more than half of the people who post in these forums have never owned a piece of real estate. If you want a more collegiate atmosphere I suggest joining the multi-unit/apartment association in Canada. They'll have forums where everyone is the real deal.

Thomas S. · Answer

@Chad Nagel

You are 100% correct. Any landlord that does not know their own landlord tenant regulations has no clue how to operate their business. Probably should not be in business.

History has shown, based on the questions posted on this web site, that the vast majority do not care to bother learning their business regulations and would prefer to operate by luck. Obviously asking questions on here the majority of time will get incorrect or misleading information that does not apply to their particular codes.

Unfortunate but that is often the reality of the interweb. When you trust in anonymous strangers rather than properly educate yourself (learn your business regulations) you take your chances.

Thomas S. · Answer

Have you been taken to court by a tenant over charging for a landlords labour. If not you may be in for a surprise when you do face the situation.

Kyle Hipp · Answer

The actual cost is the $200 fan that the tenant broke that was installed the week prior.

Your local laws are obviously different than mine. We can charge a reasonable amount for labor given proper documentation. Never had and issue. It is also foolish to just cover costs, not actual damage. So if a tenant breaks my $200 fan and I replace with a $500 fan, they habe to eat that choice, good luck getting a judge to buy that....

Wisconsin has slightly more lenient landlord/tenant laws but it keeps common sense in place. Like we do not have to store ever piece of garbage a tenant leave behind if we fill out the proper paperwork... Glad I invest where i do

Thomas S. · Answer

"I am charging them for the $200 ceiling fan regardless of whether I install a $25 light fixture or $500 ceiling fan"

You need a actual receipt to produce in court. Landlords legally are only allowed to use tenant deposits for actual costs. This is the reason repair work must be performed by contractors, landlords legally can not charge for their time.

You may deduct any amount you choose from a tenants deposit but in court you must have proof to back up the deduction.

"The tenant's security deposit is not for reimbursement of landlords costs"

Absolutely false. It can only be used to cover landlords costs and absolutely nothing more. It is also adjusted for age/life expectancy of item.

Quynh-Chi Nguyen · Answer

Thank you everyone for your input.

I haven't return his deposit yet but I don't plan on charging him anything. The device was used by me roughly 5 years ago. It was up high and on one really touch it. That's why I was wondering why he took it off in the first place. He said it's falling off so he took it off. I think he's being paranoid and took it off because he may think there is a hidden camera in there or something. He's a tenant that also broke the lease too. He signed another year then called 2 weeks later to cancelled it then stayed over another month after his lease expire then ask me to pro-rate him which I told him it's not happening. Either way, he did pay the rent on time and kept the place clean. I have no trouble finding a new tenant and I have no gap between his leaving and the new one moving in so I am okay on this end.

I am an accidental landlord and still learning :-)

-Chi

JR T. · Answer

In practice tenants rarely sue. If they actually get in the courthouse door nothing prevents you from calling them up and trying to settle their claim outside of court. Most tenants will do this as opposed to risking court with no attorney.

I suspect that part of your motion detector is a lens that controls the way in which beams are transmitted and reflected back. No lens it's busted. Just withhold the cost of a new one. You didn't discover that damage in a vacuum the tenant knows exactly what happened to your equipment.

How much would you deduct from Security Deposit

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