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Updated over 6 years ago on . Most recent reply

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Ryan Na
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Security deposit issues - California

Ryan Na
Posted

HI all, Thanks for all the discussion and help going on here. Hope I can contribute soon, but at the moment I could use a little help.

We bought our first multi-unit property this summer and had to evict a tenant for us to move in. They were not thrilled that they had to move but complied. We were sympathetic, friendly, and flexible while they gathered and moved. 

In california, a pre move out inspection needs to be done which we did. We told them to replace a broken door, shampoo carpets, and do a good job with general cleaning.

Once they moved out, they left the place dirty (really dirty), we found another broken door, and found some pet damage that we didn't see in the walkthrough. We took roughly half of the security deposit from our time cleaning and repairing, which was cheap for them, not us. Naturally (is this common protocol here), they were upset, we got a long email complaining, and they were quick to point out legal action.

My question is:

Are we expected to point out every detail that needs to be fixed in the walkthrough?

If yes, does this take precedence over their responsibility to clean the unit as it was when they moved in?

Does anyone have any advice on how to deal with move-outs in a way that prevents conflict or is legal threats something that pops up every time?

Thanks all in advance for those who offer up advice. We're new to owning multifamily.  We did (and for anyone reading this down the road) read over the landlord/tenant handbook in California.

Most Popular Reply

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Kyle J.
  • Rental Property Investor
  • Northern, CA
5,171
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Kyle J.
  • Rental Property Investor
  • Northern, CA
Replied

Tenants are never happy when landlords make security deposit deductions and often make threats but rarely follow through, in my experience. You just have to make sure you follow the law and stand by your decision. The California Landlord-Tenant Handbook, and the law (Civil Code 1950.5), address this specific issue and state the following:

The landlord may perform a final inspection after the tenant has moved out of the rental. The landlord may make a deduction from the tenant’s security deposit to repair a defect or correct a condition:

  • that was identified in the inspection statement and that the tenant did not repair or correct; or,
  • that occurred after the initial inspection; or
  • that was not identified during the initial inspection due to the presence of the tenant’s possessions.
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