Need advice on tenant vacancies

[Zachary Sales]

Hello.

I own a property in French Valley on the outskirts of Murrieta (Winchester). It was tenant occupied for 2 years. The tenants vacated the property on 5/31/24. It is now 6/21/24 and I am still going back and forth with my property management about the security deposit and repairs. They didn't tour the property until almost 10 days after the tenants moved out. Now, they are telling me that the repairs will be calculated based off of the depreciated value of the floors. The tenant very clearly damaged the floor. 

1. What's a reasonable amount of time for a property management to tour, provide quotes, and get a property advertised for rent after a tenant moves out?

2. Does calculating the amount of security deposit withholding typically get calculated by depreciation?

[Kevin Sobilo]

@Zachary Sales, state laws may differ so I don't know what your state does.

However when I think logically about depreciating damages I use this as an example:

If I built a house and rented it for 28 years without making any improvements, the tenant could burn the house to the ground and not get charged one penny because the entire house was fully depreciated down to $0.

So, while taking into consideration the age and condition of the damaged item at move in and the time the tenant was renting for is a factor, I personally don't think using a strict IRA depreciation schedule makes sense.

[Nathan Gesner]

Quote from @Zachary Sales:

You have a time limit. I recommend you focus on meeting that limit right now so you can legally close this tenant's account. Then you can focus on your property manager's methods.

My property managers do an inspection within 24 hours of the tenant leaving. This ensures the property is secured, heat or A/C is adjusted, all water is off, and they do an initial inspection to see what they are dealing with. In most cases, this quick inspection is also our final inspection and we can declare the property ready to rent or create a punch list for turnover. If we are short on time, then we may go back later to complete the final inspection and create the punch list. Our goal is to accomplish the final inspection within 72 hours.

Ten days is unacceptable. I recommend you talk to the PM and agree on what is reasonable, or you find a better PM. If the delay results in you not meeting the state deadline, then I suggest you make the PM pay for it or file a complaint against them with the state.

Everything has an expected life span. You can't charge a tenant the full cost of replacing carpet if the carpet was already eight years old and had a life expectancy of ten years. There's a lot to this and I can't explain it all in one post.

[Theresa Harris]

Ideally they would arrange to meet the tenant when they moved out to get the keys and make sure it is secure.  The inspection itself may take a few days before they do it as they likely have several vacancies at the same time as well as people moving in to other units. Check your state to see how long the PM has to notify the tenant of damages (some it is 30 days and you don't want to leave it that late).

For damage to floors (or other things that have a limited life span), it is based on depreciated costs for replacement.  I agree with what others wrote except Kevin's comment about a tenant can destroy a house after 28 years and there is no cost.

[Drew Sygit]

@Zachary Sales While 10 days sounds like a long time, let's not jump to conclusions.

We've had issues where tenants claim they've moved out, but then want to come back to get personal possessions at their leisure. So, technically they haven't moved out, but don't want to pay rent - it's a big headache!

So, what does your PMC state about this relatively long time?

Regarding charges for damages, it depends on state & local laws AND court/judge tendancies.

Most leases state tenants must return a property back to the owner/landlord in the same or better condition than when they took possession - normal wear & tear excepted.

So, what is "normal wear & tear"?

Depends on who you ask!

Tenants want all their damages to be considered normal wear & tear.

Owners want nothing to be considered normal wear & tear.

Insurance companies will depreciate everything they can to lower their claim payouts. They are NOT going to make an owner whole unless you buy a replacement specific policy.

So again, let's not jump to conclusions, just ask your PMC what legal reason compels them to depreciate tenant damage charges. Maybe they operate in multiple states and are applying the wrong statutes to your property?

[Alison Brenner]

Building on @Nathan Gesner post:

If I interpreted your post correctly and neither an estimated or final disposition has been mailed, return the entire deposit and fire your PM. As of the date of your post, you have violated California law by failing to mail an estimated or final disposition within 21 days of move-out.

If your PM didn't drop the ball and did mail out an estimated disposition, you need to discuss the security deposit return process. Conducting final inspections within 24 hours is a must. You will not prevail in a California Court if your PM permits weeks to go by before inspecting. Was your tenant offered a preliminary inspection during the two weeks prior move-out as required by law? Something like damage to flooring might have been noted then.

As for useful life (this is term used in California law), your PM is correct in taking the useful life of component into consideration. Check out the security deposit section of this handbook. https://www.courts.ca.gov/documents/California-Tenants-Guide...

As for the turn around time, I wouldn't be thrilled if my PM sat around twiddling thumbs for 10 days. If your property rents for $3500/month, you just lost over $1100 while your PM did nothing to move process along.

Hope this helps.

[Zachary Sales]

Thank you, everyone, Alison most of all. That was the nail on the head I was looking for.

[Nathan Gesner]

Quote from @Zachary Sales:

Thank you, everyone, Alison most of all. That was the nail on the head I was looking for.

I also recommend you pay for a membership in the California Apartment Association (CAA). You can learn a lot about California law and better supervise your PM.