Can you deduct landlord labor out of a tenants security deposit?

Question

Hello BP members,

I had a tenant move out on February 28, 2018 and she dumped a LARGE pile of kitty-litter (with cat feces) in a large woodchip garden bed that is attached to the home (we also took photos for evidence).  I'm curious how I can deduct this from the tenants security deposit?  This took my wife and I several hours to clean up the kitty-litter.  Can I charge the tenant for the unsanitary labor that my wife and I did? And if so, how do we charge for our hourly labor?  I should also note that I gave the tenant a formal move-out checklist prior to her move-out date explaining that if the rental unit and outside area is not appropriately cleaned, that a cleaning fee may be charged to the security deposit.

Any advice would be great!

Thanks,

Sam

Andrew B. · Answer

Everyone is giving definitive answers without pointing out that this can be largely state dependent. I have heard of many states where landlords cannot bill for their time. you should not do so without confirming that this is legal in your state.

Mike Cumbie · Answer

I would check that with your state. I am not as confident in the "yes" as some on the board are. As a personal preference, getting the work done by a handyman/landscaper/professional is always a better choice. Then you have verifiable receipts if it were to go to court. Claiming "it took 5 hours" why they are yelling "It should have taken any competent person 15 minutes" has a judge deciding who is right. Having a receipt is much easier.

Good Luck!

Rob D. · Answer

I don’t usually do the work simply because I have people that can do it faster and cheaper. And there is absolutely no question as to the work being done and paid for if a question comes up.  It’s coming out of their deposit anyway.

For California as long as you’re reasonable when you are a diy type of LL it’s not illegal.

The problem comes when LLs think they can charge obscene amounts for small thinks because they simply see the security deposit as “their” money and start charging $100 a hour to clean  for 8 hours. Or some insane bs charges where a cleaning service charges $200 a day.

If you do diy itemize charges and rates. My leases spell out cleaning and paint rates.

Cara Lonsdale · Answer

ABSOLUTELY!  Whether you do the work, or hire it out, it has to get done.  There is nothing that states that just because you do the work, you can't charge for it.

If your move out sheet had a cleaning fee, then charge that.  All of our move out checklists have pricing on them so that Tenants know what to expect if they leave work for us to do and/or hire out.  So, for example, landscape clean-up $150+.  This way if it was more time consuming, we charge more, but at the very minimum, a $150 fee will be charged.

When factoring the cost, make sure that it covers the minimum time just to make it worth it to someone to do the work.  So, just charging an hourly rate like $10-15 per hour for an hour or two of work isn't enough.  If you hired a professional service to come out and clean it, it would cost more than $10-20.

Take it from Home Warranties.  They charge a $65 trade call fee.  That is just to get the contractor out there to assess the problem.

Rob D. · Answer

You can deduct labor costs as long as they are reasonable to what a landscaper will charge for the same work.  So you can’t charge $100 a hour labor rate at 3 hours chargeable time to clean a planter.

I don’t charge specific deposits as far as security or pet. It’s all one and the same.

Unless it was a extensive project I would want to get that tenant gone so I wouldn’t bother with a $20-$30 charge.

Linda S. · Answer

@Samuel J Claeson,

You can, and it should be the reasonable rate you'd pay someone to do the job, I'm guessing $10-15/hr as it's just dump/trash removal services.

Personally, I wouldn't and just close that chapter and focus on finding the next tenant.  Hopefully you have a non-refundable pet deposit that would provide for this, so you don't have to take from the regular security deposit.

Thomas S. · Answer

The answer is entirely state specific/dependant. If your state landlord tenant regulations do not indicate a landlord may charge for his time then all landlord time (office, overall management, physical labour etc.) is considered to be part of the operation of the business and is compensated for through the investment income.

Landlords advising to charge a hourly rate that do not have codes authorising this charge may be challenged by a tennat and in a court of law will likely have the charges denied. In other words you may charge until challenged and then you may not charge for your time.

Legally it is always preferred to use contractors if you intend to bill for time associated with repairs. Remember you are not paying your tennat is.

Samuel J Claeson · Answer

Thank you all for the advice! Much appreciated!

Samuel J Claeson · Answer

Thanks for the advice, @Linda D. I actually inherited this tenant and unfortunately there was not a pet deposit.  I have also already found a new tenant, so I don't mind the time an effort to figure out what I can/can't deduct.  If this wasn't such a filthy and inconsiderate thing to do, I wouldn't deduct anything from her deposit.

Can you deduct landlord labor out of a tenants security deposit?

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