Security Deposit - items that can be deducted in MN

[Greg Pratt]

Hello,

I own a duplex and I just recently had a tenant move out and now it's time to consolidate the security deposit and I had a few questions and suggestions on what items can and cannot be deducted in Minnesota.  I looked through the statutes but didn't see anything specific regarding the questions I had.

First, a little background.  I use Renters Warehouse for tenant screening and placement (I do the management), and use their standard lease.  They found me a tenant for a 1 year lease starting last Aug.1, 2017.  The lease expiration date/time was 12:00 pm on July 31, 2017.  They use noon as an expiration in case a new tenant begins tenancy the following day to have enough time to get the unit ready - which was the case for me.

Then tenant provided me proper notice by text message a few days before the 60 day required notice back in May.  She mentioned she would vacate the property as stated in our signed lease (her words).  She herself works as a property manager for the last 7 years and has just started working as a real estate agent.  I feel that my assumption that she read and understood our lease is justified.

A week before the moveout date, I secured the new tenant and they wanted to move in right away on Aug. 1.  I informed the current tenant of the new tenant through candid phone conversation - It wasn't a formal notice.  She also knew the apartment was being shown since the agent from Renters Warehouse was notifying her of showings.  4 days before the move out date, I had a city inspection and when I went into the property, it didn't appear that any packing or moving had been started even though she stated that she already had a few days prior over the phone. (She already planned on using her friends garage for storage and she owns a house boat that she was planning on moving on to after she moved out.)  My eyebrow was raised.  3 days before moveout I called again to see how progress was going - and that's when things started to go south.  She claimed I never told her about a moveout time of noon - even though it is clearly stated in the lease on page 1 in the Basic Provisions section.  She claimed she didn't have the lease anymore (I emailed a copy to her immediately following the phone conversation, and sent a text to inform her I did so).  She stated that she would do the best she could to be out in time.  I informed her that new tenants were coming in the following day and it needed to be cleaned out by noon, so I have ample time to deep clean the unit for the new tenant.  Again she stated she would do the best she could.  I went into panic mode and contacted a mutual contractor that we both use (she has known him for years, and introduced me to him)  He then contacted her boss/friend and he said he would take care of hiring movers.  

I arrived at 12:45 on moveout day, and only half of the apartment was moved out.  By 5:00, most of the items were out of the apartment except for maybe 2 truckloads and 2 truckloads in the garage.  We were able to start cleaning and patching walls at this point.  By 8:00 all items were out of the unit, and she said goodbye and left us to do the rest of the work and moving.  She blamed her boss/friend that it was his fault that the movers didn't move her out in time and it wasn't her problem anymore.  We were still working on cleaning, patching, and fixing the little things.  We left at 9:30 to take the remaining items out of the garage and bring them to her boss's house.  We returned at 6am the following morning to finish touch up painting and then were able to do a deep clean of the apartment.

First off.  Yes, I learned my lesson.  You don't have to mention that unless you really want to!  Again, I learned my lesson.  I called Renters Warehouse yesterday and they will be managing all my properties now.  Once again, I learned my lesson!  

New tenants are in.  They seem happy.  We still need to go back and do touch up stain on the floors where the movers gouged deep scrapes in the floors, and some carpet cleaning in the common areas that I promised to do for them.  For the most part, things here are good.

All that is left is figuring out the security deposit.  I know a suggestion will be coming that "It's over, she is out, you learned your lesson, give her back her security deposit, move on and don't let it happen again."  I will consider this.  However, I still would like to contemplate my other options.  First item, Surrender of Premises.  It can easily be demonstrated that she was not out by noon, or a reasonable time afterwards to allow me to prepare the unit for the next tenant.  Within the Lease, I have this section stated. (separate from Holdover Rent which I will not be seeking)

SURRENDER OF PREMISES. Upon the expiration of the Lease and any extensions thereof, Tenant shall surrender the Premises in as good of state and condition as they were in at the commencement of this Lease, reasonable wear and tear from ordinary use excepted.

The issue here is there is not mention of a $$ for a Penalty.  Given circumstances above, are there any suggestions as to a penalty?  If she would have been completely out by 2:00, I wouldn't be writing this topic.  But since it wasn't until 5 - or later depending on how you see it, I feel a penalty is completely justified.  Is imposing a penalty for this situation allowed in Minnesota.

Second issue.  Cleaning fees.  My (our) contractor will be billing me for the time he was working there.  What is an acceptable hourly rate for cleaning in the State of Minnesota to impose onto the tenant. 

Third issue.  I was also there cleaning, fixing, moving.  Is an owner/Landlord entitled to charge an hourly rate for time spent cleaning and repairing the unit (only above and beyond a normal wear and tear condition of the apartment) in the State of Minnesota

I will not be billing her for time spent 'deep cleaning'.  I understand this isn't expected for a previous tenant.

Any security deposit deductions - or if depleted, billing - I plan on taking will have full documentation when I send it to her.  I will prepare this as if I will be taken to court and need to provide detailed evidence on the amounts I have deducted.  (Bad faith retention)

Other things that have happened over the course of tenancy, which I understand has nothing to do with the Security Deposit, just wanted to give you the full picture of who I am dealing with:

 - She attempted to AirBnb one of the rooms, AND the entire apartment for when she would be on her boat (2 separate listings) without my permission.  My (our) contractor informed me of this because he does the cleanings for other AirBnb's that she co-hosts and got an automated notice of an upcoming scheduled cleaning.  I told her to immediately stop and she cancelled the booking so there was no need to look into breach of lease at that point.

 - "Slip and Fall" case is pending now.  I'm not worried about negligence or liability.  My (our) contractor does the shoveling and she admits that he did a great job.  She just fell on my property because she is clumsy (her words).  She actually stated that when she fell on her face, that if my(our) wouldn't have shoveled so well, she would have landed on snow instead of concrete, and her injuries would have been less.  Almost made it sound like it was his fault.

Thanks you in advance for your suggestions and advice.  I have definitely learned my lesson!