Tenant Disagrees with Deposit Charges

[Jon S.]

Advice please? We are having a disagreement with a tenant who does not think the fees we plan to take from their deposit are fair or reasonable.  At first they intended to only pay a $75 cleaning fee and refused to pay the rest. After some texting they seemed to agree to pay the last two months water bill which they failed to pay, adding up to $112.00, because they felt that was right, but then they seemed to take that back, claiming that since when they moved in the AC wasn't working the first 8 days they were there, that I owe them $387, which should cover all of the above expenses. Funny, they never complained before about the initial period when we were installing a new AC unit, they wanted to move in on the 1st of the month, they never complained about it. Suddenly, this has become their argument, on top of saying that I didn't mail them the final accounting in time.  They are also stating that charging them for light bulbs ($15), smoke detector batteries($5), and painting ($145) is nickel and diming them, or falls under usual wear and tear. I sent them their final accounting on day 29 or 30 after they moved out, and they seemed to think that since they didn't receive their final accounting on or before day 30, they don't have to pay these costs. Actually, as long as I sent it on or before day 30, via certified mail, it still counts, and I did send it via certified mail on day 30. That said, I still would like to reach a compromise with the tenant, I'm not trying to over charge them for anything. There were many items I didn't list such as a $20 charge for getting the garbage disposal unstuck, or repairing a toilet seat that was falling off despite being a newly installed higher end toilet that was installed while they were there because tenants didn't feel the toilets flushed strong enough. The seat was easily repaired, but it took the maintenance man time, and these things add up. So in total, Out of a $1550 deposit, I was going to return all but $352. Of that, $112 was 2 months water, garbage sewer, so that means $240 represents the amount needed to put the apartment back in the condition it was given to them. It was freshly renovated and freshly painted and everything was brand new when they moved in. We did have to have areas of the rooms patched and or repainted due to hanging things on walls, or scraping paint off walls. We hired a cleaning service to clean for $75. Our paint fee was $12 for materials and $135 labor, I don't know how it could be much lower than that. However, we are willing to compomise a bit in order to be goog landlords. 

Tenants had very few issues in the year that they were tenants. There were a couple things that I didn't make an issue of, such as they adopted a stray cat in a no pet lease, but I didn't charge them for it. They also had a friend there almost constantly, including his parked car, enough that I suspected he was living there at least part time and maybe full time, but I didn't say anything.  When they asked for something to be fixed, we fixed it very promptly and to tenants satisfaction. There were 2 tenants, one was always eager to visit and talk and discuss the neighborhood, and even offered us coffee once, while the other seemed to avoid direct contact. However, they paid their rent on time. There was only one conflict in the entire tenancy, when we needed to show the apartment during an inconvenient time, because it was the only time when a prospective tenant who already completed an application and passed all background screening, could see the apartment, because they were going out of the country. We handled this as gently as possible, apologies, compromises on when would be the most convenient time, etc. So there weren't any major issues between us and the tenant. 

Oh, also, suddenly on the day they protest these charges, there appears a negative 2 star rating on my google business page, from someone who has never been a tenant. I'm guessing that was their friend who parked his car there for free for much of the year. 

It is unexpected to us to have this kind of disagreement after a relatively good tenancy. I guess we should expect this when it comes to deposits from now on. We have not had a similar situation or scenario, since most of our tenants have remained with us until now. Still learing how all of this works. 

All suggestions and advice from experienced landlords and property managers is appreciated. 

Thank you

[Shelly Doris Milburn]

This is potentially a tricky one. You are not talking about a lot of money at the end of the day. You did not change them for many things that it sounds like you potentially could have. However, if they decide to take it further you will likely spend more money and time then it is worth to battle with them. 

My thoughts are:

1. do not text them about it. (1) phone call, (2) email, (3) mail -- so that the communication can be as clear as possible. I feel that prolonged texting about business matters can seem combative due to the abbreviated nature of it.

2. Take steps to always have (1) move in photos, (2) move in inspections signed by both parties, (3) unit inspection upon receipt of notice to vacate accompanied by notice to resident of anticipated move out changes based on condition at that time. supply info on resident responsibility at move out based on lease contract. (4) move out inspection, (5) move out photos,  and (6) deposit reconciliation report and refund/bill as required.

3. I am a proponent of holding up the terms of the lease on both ends. You do your part as landlord and they do their part as resident. If they violate the lease send formal notice (even if you choose not to charge). Sounds like they violated the pet policy, guest policy, and their obligation for timely utility payments. You mentioned an a/c issue at move in. Again, I would document those types of items that they found condition acceptable and timelines were communicated. In researching resident right to withhold payment based on maintenance issues I have found that they are not afforded that right (at least in my area). 

Of course, you want to end on a high note and find a win-win. I think speaking with the resident to find a middle ground is a good idea. Clarify rights and responsibilities and get to a positive end to the relationship.