Security Deposit with Inherited Tenant

[Matthew Doyle]

Hi all, 

I'm in the process of turning over my first rental unit. I am househacking a duplex which came with a tenant in place. The tenant has since left, but was not the easiest to deal with over the past year. Upon getting the unit back, I've found some issues with the other unit that appear to be beyond normal wear and tear. My issue, however, is the previous owner did not do a pre-move in checklist or anything of the like. That said, the lease the tenant signed did have language specifying that she received the property in satisfactory condition and it was expected to be returned similarly. Admittedly, I have not been very proactive in inspecting the unit over the past year. This tenant paid rent in all cash and I would pick it up monthly which gave me a brief view of the interior, but not much. Next time around, I will not accept cash rent, nor will I be picking it up. Additionally, I'll put language in the lease specifying quarterly inspections/air filter changes. 

In any case, I found the following after she moved out:

- Smoke/animal smell throughout the unit (she was a smoker and smoking in the unit was strictly prohibited and dog was allowed per the lease)

- Carpet with cigarette burns and soaking wet at the time of removal (no telling how long its been like this)

- Rear window has a broken pane (still functional as it is a double pane, but needs to be replaced regardless)

- Holes in drywall

- Replaced bedroom doorknob with deadbolt (because her middle school son was stealing cigarettes lol)

- Backyard full of metal/wood fragments and general rubbish including shoes, a knife, batteries, fishing reels etc. (the son was big into breaking old furniture and stuff with a hammer) 

Now breaking down what I've done/plan to do:

Smoke smell- I've had to put in some serious work getting the smell out -scrubbing walls and floors with TSP and running ozone relentlessly.

Carpet -I have no idea how old it is and was planning on replacing with LVP anyway. But upon ripping it up, I found it to be soaking wet and layered with piles of dander/dirt, which due to the moisture was more of a mud -yuck. I had to thoroughly sweep, vacuum, sweep, vaccuum, scrape, vaccuum, then scrub with TSP to get the filth up.

Window - I'm planning on replacing the window myself -I've done it before and don't wish to pay a contractor for this. 

Holes in drywall -easy patch work. Planning on doing this myself. 

Doorknob -easy replacement -again, planning on doing this myself.

Backyard rubbish -It was impossible to mow so I elected to spray with groundclear. Now that the grass is all dead, I see all of the metal fragments and rubbish. I'm concerned this could be a big liability for my next tenant so I'm planning on raking the entire surface out and running a magnetic roller over the top to grab anything I miss. To be clear, I have already found an old knife, countless nails/screws, metal fragments (presumably from the son's hobby of busting up furniture), batteries... you name it. 

I have a security deposit of $800 and I'm wondering if I can withhold for any of this. My gut tells me that I would have no problem charging for the door knob and holes in drywall. However, I'm not sure if I can withhold for the intensive cleaning needed because of the smoke/dog smell, broken window, carpet/sub floor cleaning, and backyard rubbish. She claims she left everything exactly as she found it -but has admitted to the drywall holes and replacing the doorknob, which leads me to believe she's not being forthright with the other items. She's been in the unit for at least 2 years prior to my acquisition so I really have no way of knowing what was truly her doing or what was there previously. However, as I mentioned earlier, she certified in the lease she signed that she received the property in satisfactory condition and agreed to return it alike. 

I've learned a lot here -no doubt. For my next purchase I was most definitely see to it that all tenants have vacated as a part of the sale agreement (or I will require my own screening of current tenants). Additionally, I'll make sure to have all info on the condition of the property when the tenants moved in. 

In any case, I would greatly appreciate any advice you all may be able to provide as to how I should proceed. Specifically, I'd be interested in hearing about similar experiences and any advice as to how something like this would hold up in small claims court if it came to that (unlikely in my opinion). I know that if I hired this out to contractors, it would easily surpass $800 but I'd rather do the work myself and return any deposit if possible. I can all but guarantee she will go ballistic when she gets the notice of intent to withhold. She's also a single mom working a low income job and in general I want to be as fair as possible -but that's a two way street and I don't think its fair for me to bear the cost of all of these items that were likely due to her negligence/that of her kids. 
 

Don't hold back please -I'd just like to wrap my mind around what I'm in for. Thank you!