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Updated about 1 year ago on . Most recent reply

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Kathleen Dylan
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End of Lease: Responsibility of tenant for return of Deposit?

Kathleen Dylan
Posted

Tenants are leaving after 18-month lease. What must they do for return of Deposit? Return property to same condition when the lease began? Clean? Paint? This is my first rental and tenant and I'm meeting with them tomorrow to discuss. Thanks!

  • Kathleen Dylan
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    Melanie P.
    #3 General Real Estate Investing Contributor
    • Rental Property Investor
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    Melanie P.
    #3 General Real Estate Investing Contributor
    • Rental Property Investor
    Replied

    Every state is a little different, California being stricter than most. Tenant must deliver possession on last day of lease in same condition as rented, normal wear and tear excepted. If you're withholding more than $125 you must attach copies of your bills to the itemized receipt. You must do so within 21 days. Ask the tenant for a forwarding address for their deposit, if they don't give one send the deposit to your rental with the words ADDRESS SERVICE REQUESTED in the middle of the empty area between the address block and the stamp. From the CA website:

    A landlord can only deduct certain items from a security deposit

    The landlord can deduct for:

    • Cleaning the rental unit when a tenant moves out, but only to make it as clean as when the tenant first moved in
    • Repairing damage, other than normal wear and tear, caused by the tenant and the tenant's guests
    • Restoring or replacing furniture or other personal items, but only if this was included in the rental agreement and the damage isn't from normal wear and tear

    Generally, a landlord can keep part of the security deposit for rent owed. But there are some exceptions when a landlord can't do this. For example, a landlord can't use a security deposit to cover COVID-19 rental debt.

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