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Updated almost 12 years ago on . Most recent reply

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Mark Forest
  • Real Estate Investor
  • Fenton, MI
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Charging for your time after tenant leaves

Mark Forest
  • Real Estate Investor
  • Fenton, MI
Posted

After tenants leave and you find damage you will of course send them an itemized list of the cost of materials to fix the damage to explain why they are not getting any or all of their security deposit back. How do you all account for the time you spend having to fix the mess they left behind? How do you describe it in your letter to the former tenant?

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Rob K.
  • Investor
  • Southeast, MI
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Rob K.
  • Investor
  • Southeast, MI
Replied

The Security Deposit Settlement that we use in Michigan has a column for "Estimated Cost of Repair". I always charge what it would cost if I hire someone - whether I hire someone or do the work myself. You only have to defend your charges if they object in writing. (I have had people call and verbally object to the charges, but never in writing where I would have to take them to court).

I also charge retail for stuff, even if I get a wholesale price. For example, I had a tenant move and the handle was missing from the stove. I asked her where the handle was and she claimed she didn't know. As if! I called a local appliance place and the handle was $65. I then found the handle online for $21. I still charged her the $65. That's what I could have paid for it if I hadn't shopped around.

Some people will also have different views on "normal wear and tear". For example, I have had people say that Kool Aid stains are normal wear and tear. I disagree. Coloring on the walls is not normal either. Some people can't control their brats and you end up with a mess. I let them know that my kids never color on my walls. Grease on the cabinets is not normal either. It's filthy. I always charge for that as well.

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