How much to take out of security deposit for drugs + damages

Question

Hello all,

This past week, I had a renter move out who has been great until now. After he moved out, we noticed a few things wrong. First, the whole apartment smelled like pot (illegal in Indiana), then we found some of it in two of the rooms, dog pee stains on the carpet, multiple pieces of furniture left in the rooms, trash everywhere, animals in the freezer, full fridge, mold in the bathroom, chewed up internet cords, and holes in the carpet.

They paid a $500 deposit, $200 non-refundable pet deposit to clean carpets, and a $300 pet deposit. Then, I told them I would buy one of their A/C units for $50.

Oh yea, and they didn't give me a 30 day written notice before vacating the residence (as stated in the lease).

So right now, I owe them $850 minus damages.  It took my wife and I 5 hours to clean the residence and then we had to move all their stuff out.

What is a fair amount to give back to them?

Thank you all for your advice.

Derek

Russell Brazil · Answer

Check your state laws...but most places do not allow a landlord to withold money for work they perform on their own. So the 10 hours of man power you and the wife put in would not be something you can charge for. If you had hired it out, then you can.

Joe Splitrock · Answer

@Derek Snyder

Step one is to take detailed photos of all damage, drugs, dirty items. I take videos too. If someone challenges you in court, photos help support your claim.

Second I usually recommend hiring cleaning and repair work. Having receipts is the easiest way to support deposit deductions. In many states, tenants are allowed to request an itemized detail of deductions with receipts.

As far as the carpet cleaning, it sounds like $200 non-refundable charge was to cover carpets. Did you hire the carpets cleaned or was that part of your 5 hours cleaning (if so don't double dip)? I would leave the $200 off the summary because agreed upfront as a non-refundable charge, then you don't owe any explanation on the security deposit deduction form.

If you perform work yourself, you need to keep detailed records. Such as cleaning kitchen, start time 9:30AM end time 10:15AM, total 45 minutes = .75 hours. You could be more general and just show the total start/ stop time, but the more detail you keep, the harder it is to dispute.

As far as the hourly rate, you need to use the market rate for the type of work being performed. For example, if a cleaning company charges $25 per hour, then bill $25 per hour. Some landlords argue their time is worth $100 per hour or more, so they charge that rate. That is not how it works. If you chose to be a cleaning person for the day, you get paid cleaning person wage. If it lands in dispute in court, be prepared to defend how your billable rate is fair market. Someone mentioned heavy duty cleaning rate of $50 per hour, which seems unreasonable given cleaning is a very low level job. I can have a crew clean a 3 bed / 2 bath house for $250, which is two people working 8 hours.

Furniture and garbage, I personally hire a junk hauler that charges $50 a pickup load or put it out with your garbage and charge whatever the extra haul charge is.

As far as the carpet damage, you mentioned stains and holes. Stains may be cleanable, holes are probably not repairable. Charging for damaged carpet is an area to be careful. You can only charge based on the age and condition. Some states have specific rules. Average life of carpet in a rental is 7-10 years. Let's say the replacement cost for a room is $400 and the carpet is 5 years old. That means you can only charge for 5/10 which is 50% the cost, so $200. Again it is helpful if you have receipts for the actual replacement. If not receipts, then estimates prepared by a local company should be obtained.

The pot smell falls under deodorizing. It really doesn't matter if the smell came from pot or if it came from cooking curry, it is damage either way. Very often the smells go away after cleaning, especially after carpet cleaning. If the smell went away, then there is nothing to charge. If the smell remains, then I would purchase an ozone machine which will take care of smoke smell. They cost $80 on Amazon.

At the end of cleaning, I take photos of the unit after cleaning, then I load before and after pictures up to a share drive. I prepare a summary for the tenant, with detailed costs for every item cleaned and damaged. I give them a link to the share point with photos and receipts.

Here is an example of what your summary may look like. Your numbers may vary based on the actual numbers you plug in:

+$500 deposit

+$300 pet deposit

+$50 landlord purchase AC unit

-$250 cleaning (10 hours at $25 per hour)

-$200 carpet replacement ($400 carpet at 50% depreciation = $200)

-$50 junk hauling

= +$350 returned

Disregard people who tell you just to keep the entire deposit. As a landlord your job is to provide a fair summary of the damage, leaving your landlord frustration out of it. If the cost to restore the property exceeds their deposit, you send them a bill. If it costs less than deposit, you send them a check. If you provide a detailed summary with photos to your tenant, odds are good they will never dispute.

Adrien C. · Answer

If they damaged the carpets and other stuff, the $850 is gone. It doesn't take much to eat through $850 now. Get a quote on new carpet. In the future, get a quote on the clean up too- including a dumpster charge. Send them an itemized list of the expenses within 45 days. You aren't required to do the work prior to sending the written letter of expenses. Plus if he didn't give 30 day notice, he still is responsible for Nov rent so you're out there. I'm sure the dead beat ex-tenant isn't expecting anything back but cover your A and send the itemized letter.

Russell Brazil · Answer

Animals in the freezer?

David Zheng · Answer

I hope you recorded EVRERYTHING before you cleaned and emptied. will help in case things get nasty

Bill F. · Answer

@Derek Snyder Wow, un-taxidermied animals. I wonder where they kept their frozen food...behind or next to the animals?

Add up all of the supplies you needed (Windex, paper towels, carpet cleaning solution, paint..) Plus your expenses ( Carpet cleaner rental..) and an hourly rate for you and your wife.

I have a "light cleaning" rate of $30/hr, which I arbitrarily define as what I do at my house on a Saturday morning, and heavy cleaning, which it sounds like you had to do, rate of $45-55/hr.

When you send the tenants their deposit back include a Disposition of Deposit letter explaining all of the credits they have (Deposit, pet deposit, $50 for the A/C) and the debits you made by item. Subtract Debits from Credits and cut them a check for the difference.

I know there is a template somewhere on BP for the Disposition of Deposit.

Derek Snyder · Answer

^Ha! One of the tenants were into taxidermy... so 5 birds, a hummingbird, baby squirrel, maybe a skunk, and some other animal?

But don't let that distract you from me desperately needing advice.

Joe Splitrock · Answer

If my lease requires 30 day notice, it also requires a full calendar month. I do not prorate unless I get the unit re-rented. So if someone was moving out November 30th, I would require notice by October 31st. If they mailed me notice, I would use the post mark date as the official date. It should be mailed by the last day of the month or they become responsible for an entire extra month. Example: Notice to vacate post marked on November 6th, they would be responsible for rent through December 31st.

I tell tenants during lease signing that they can send me notice to vacate via e-mail or US mail. I also tell them to call me to let me know it is coming, so if I get a call on the 31st then I consider that the notice date. I make it so easy on tenants, than any non-compliance is only due to their negligence.

As far as the best approach in this case, it would depend on what it says in the lease and when the actual notice was given. I would say prorating days is very reasonable or even going into the next month if that is what the lease says.

Nathan Gesner · Answer

1. You should always hire someone else to do the cleaning. If you end up in court the judge may throw out any charges for work performed by the Landord.

2. Find the going rate for a cleaning service. In my area it is $20 - $25 per hour and that includes the cleaning supplies. Multiply that by the number of hours worked and viola!

3. If they failed to give 30 days notice then they are legally obligated for rent and utilities until the 30-day period is complete or a new tenant is placed, whichever happens first.

4. Holes in the carpet are beyond ordinary wear-and-tear and not part of cleaning. Did you have the carpet repaired and charge for it?

5. You shouldn't charge a "non-refundable fee" and then apply it to carpet cleaning. The non-refundable fee should be money in your pocket, not money you hold for a while and then apply to cleaning up after the tenant. If you make the tenant pre-pay for carpet cleaning they are less likely to take care of the carpet. Instead, I recommend charging the non-refundable fee and mandate the tenant have the carpet professionally cleaned after departure and provide you with a copy of the bill.

6. Don't charge a separate "pet deposit" because some states will only allow the pet deposit to be applied towards pet damage. Instead, simply increase the security deposit then it can be applied to anything, not just pet damage.

I would wait until a new tenant takes over or the 30-day period expires. Calculate the unpaid rent and the charges for cleaning and repairs. Apply the deposit and bill them for anything extra.

How much to take out of security deposit for drugs + damages

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