Investor · El Cerrito, CA · Member since 2015 · 108 posts · 26 votes
I have a rental that's been rented out for about 4 years to the same tenants. At this point they are month-to-month and I only need 30-day notice to ask them to move. I'm planning to ask them to move out soon because I'm planning to sell the property.
My question is - what am I allowed to use their security deposit for exactly? Does it make any difference if they have been living in the house for 1 year or 4 years when it comes to what I'm allowed to use the money for?
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
7y
@Noam Ofan - this is regulated by State law, in your case CA. You should be able to find a pdf from a local gov agency, so you can reference the actual law.
In Wisconsin you can use the security deposit to cover actual damages, like a broken window, a hole in the drywall, the kid's marker drawings on the HWF, the dog's scratchmarks on the front door etc.
Excluded however is reasonable wear and tear. Usually carpet and paint falls in that category.
We give tenants a move out checklist and instructions for cleaning. This sets the expectations of the condition we want to get the place back. Sometimes you get a property back ampty and clean and you can literally move in the next day. Sometimes thye left furniture and junk we have to dispose, before we can start to clean. We do have set fees for cleaning etc and those are detailed in the move out instructions.
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
7y
@Noam Ofan - this is regulated by State law, in your case CA. You should be able to find a pdf from a local gov agency, so you can reference the actual law.
In Wisconsin you can use the security deposit to cover actual damages, like a broken window, a hole in the drywall, the kid's marker drawings on the HWF, the dog's scratchmarks on the front door etc.
Excluded however is reasonable wear and tear. Usually carpet and paint falls in that category.
We give tenants a move out checklist and instructions for cleaning. This sets the expectations of the condition we want to get the place back. Sometimes you get a property back ampty and clean and you can literally move in the next day. Sometimes thye left furniture and junk we have to dispose, before we can start to clean. We do have set fees for cleaning etc and those are detailed in the move out instructions.
Las Vegas, NV · Member since 2015 · 5 posts · 3 votes
7y
Nice to see a responsible landlord and asking a good question and not just pocketing the $$$ as default. By the way do you have a buyer? Send info if not.
Property Manager · Henderson, NV · Member since 2018 · 501 posts · 317 votes
7y
It depends on which State your rental is in. In Nevada, the security deposit can be used for past due rent (only if they have moved out), insufficient notice (make sure your lease agreement covers this), reasonable cleaning charges, and repairs/damages. There must be an itemized accounting and remainder of deposit provided to former tenant within 30 days of the day home was vacated.
I agree with @Marcus Auerbach you can use it for damages to the unit outside of normal wear and tear. I use a move-in sheet where the tenant can identify any existing damage to the unit so during move out those items are excluded for repairs beyond normal wear and tear. A tenant that has been there for four years is going to require most likely painting the unit as well as a deep cleaning. If your lucky they were very clean and took care of the place to minimize your cost. I did have a tenant who really wanted there security deposit back so they hired a cleaning company. I wish I had more tenants like that.
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y
As a landlord, I take a very conservative approach to keeping a tenants deposit, or portion thereof. If I do some cleaning, no charge. Needs to be a professional with an actual bill that was paid. The last thing you want is to end up in court for a few hundred dollars, or to get that local reputation as the landlord that keeps all deposits. But my lease does state about professional carpet cleaning and I do have move-in and move-out checklists for tenants.