Tenant threatening legal action over security deposit

[Account Closed]

Hi Bigger Pockets -- I have a situation I'm not sure how to deal with, am hoping for your help. For context, I am a new investor who is househacking my first property; at this time I do not have a lawyer, and the house is in my personal name (rather than an LLC).

I have former tenants who recently moved out, and they took it upon themselves to "fix" the pinholes where they hung pictures. They accomplished this by painting large, discolored squares in multiple areas, of every wall, of every room (with only a couple exceptions). The color difference was not subtle, I've attached some images for reference (links below) -- it was like this through the entire house, total of 3 bedrooms, a kitchen, a living room, and a hallway. We attempted to match the color for touchups, but failed to do so (the house was recently purchased, original paint samples unavailable). My former tenants also left a decent amount of cleaning to be done, ~10 hours worth. I received a formal bid of $3,200 to fix the paint, and then did all the work myself.

All things considered, my tenants received back ~1.6% of their $2,250 security deposit. The charges included A) $110 worth of remaining utilities, B) $835 for cleaning ($235 carpet + $600 for labor), and C) $1,270 for paint damages ($295 for supplies + 30 hours of labor at $32.50/per). Along with their disposition of deposit, I included and referenced Bigger Pockets' Vacating and Cleaning Instructions and Itemized List of Common Deductions (both of which were provided to tenants ahead of time), images of the damages, an invoice for the carpet cleaning, receipts for the paint materials, the page of their signed lease saying they are not to paint without permission, and finally the formal $3,200 bid we received. 

My former tenants were predictably less than enthused, and they are now threatening legal action -- they claim that because I could not provide them with the appropriate color, the paint is not their responsibility. There is obviously nothing in the lease which defines it as my responsibility to provide accurate paint samples upon move out, but they don't see it that way. Naturally. 

I am not sure how to proceed -- aside from this situation, these were quality tenants. They paid rent early, took care of the property, etc. -- they were great at living in the rental, they just weren't great at moving out. As far as the cleaning, I believe we simply have different standards for what qualifies as "move-in ready". As far as the paint, these tenants genuinely spent a lot of time and money *trying* to fix the situation; they just unfortunately made it much, much worse than if they had done nothing at all. 

I am 2nd guessing how much I charged them for the cleaning, and am also considering a small refund on the paint based on remaining materials. At this point, I honestly just want them to go away. Is it worth sending them more money, or is that a slippery slope which will just leave them asking for more? Should I hold strong to my claim that their painting violated the lease agreement, and that I would have been fully justified to hire the work out and send them an invoice? 

Any advice you have would be much appreciated -- thanks BP, you're always there when I need ya! 

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[Joe Martella]

Whoa.  You charged them for every nickel.

First, you need to go to your lease and see what it says.  Then you have to figure out what is normal wear and tear.  

If this goes to court, they are going to look at how long the tenants are going to live there and what is reasonable. 

First, lets go to cleaning.  $835 for cleaning is a ripoff.  I get cleaning of a whole house done for about $200 - $250.  When tenants move out, I don't necessarily charge them for cleaning if they made an attempt to provide the unit in the broom swept condition.  

As for the carpet, you cannot charge them for 100% of the carpet.  The carpet depreciates in value every year.  

Spackling, first, the tenants sealed up the holes.  I personally think that it is unreasonable to charge people to seal up holes from pictures.  Most rolls of the paint cover the holes up.  It is a $10 bucket of spackle and some landlords charge hundreds.  I personally think it is abusive.  

Paint - you can't tell me that you wouldn't repaint the unit for a new renter.  If they just painted a small area over the holes, then you can easily paint over them if you can match the paint.  We are talking about "pinholes" which are mostly sealed up by painting alone.  Are you chagrining them for your labor?  If so, you aren't allowed to do so.  The$3,200 quote seems like the entire unit is getting a fresh coat of paint.  If you can't match the existing paint, how can you expect the tenants to do so?  Looks like you are trying to get a free paint job of the unit if it goes to a judge. 

The only thing I would have taken from them was for the utilities.  Your pictures can't be viewed, but they are irrelevant based on your description.  Remember, turnovers cost money, that is why you want the tenant to stay as long as possible.  

I can tell you that if my tenants left the place in 100% amazing condition, I will still do spot painting if not painting the entire unit, having the place cleaned and the carpets steam cleaned.   Note that I usually paint the unit.  Paint is low cost and easy, but annoying, to do.  A fresh paint smell is similar to that of a new car smell for me - especially when I am showing the unit.

I don't understand why some landlords nickel and dime the tenants that are moving out.  Remember, tenants talk to other tenants, too.