Security Deposit Return w/o Move-In Condition Report - Michigan - Grand Rapids

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Security Deposit Return w/o Move-In Condition Report - Michigan - Grand Rapids

Mac BoevePro Member
Rental Property Investor · Holland, MI · Member since 2020 · 26 posts · 4 votes

One of my tenants recently moved out.

The place wasn't trashed, but seems like they did no cleaning when they left. Visible dirt/dust on almost every surface, trash (including Q-tips) left on bathroom floor, toilet not cleaned, food splatter around kitchen, smudges on walls, windows and mirrors, list goes on... 

There was also some minor damage: handful of nail holes in every room, their cat scratched up some of the trim, a bunch of dings/gouges around the doorways and in the bedrooms, marker stains on the bedroom wall.

More significant damages: The tenant put glow stars up in the kids bedroom. We have older ceiling tiles, so when each star was removed it tore off the surface of the tile. So the entire ceiling needed to spackled and painted. How much of this work should I charge to the tenant? What I'm torn about is that the ceiling tiles were not painted, if I had painted them before hand, there's a decent chance this damage would not have occurred? Does that even matter, or should I charge the full amount for the painting/patching?

Lastly, there were a few small (but very visible) stains around the carpet. The carpet is 3-5 years old and was in great condition. I'm not going to replace the whole carpet. How much can/should I charge for this? 

They only rented from me for 9 months so the "normal wear and tear" should be pretty low.

Unfortunately, I do not have a move-in check list on file. But I have pictures from before they moved in and plenty of pictures of the mess and damages. I have had some verbal conversations with the tenant regarding the move out process, but nothing documented outside of the lease.  

In our lease it states: "Landlord and Tenant may conduct an inspection at the time of possession. ... Taking possession of the Premises by Tenant is conclusive evidence to the fact that the Premises are in good order and satisfactory condition." 

It also states: "The landlord shall inspect the premises and itemize damages against and Inventory Checklist. The security deposit will be used to repair any such damages or any other obligation against said security deposit including but not limited, to unpaid rent." There is also some verbiage in the lease regarding cleaning and such.

So, I feel I have some grounds to stand on, even without a move-in checklist. 

Can I legally charge them (i.e. hold up in court if they dispute)?

How much can/should I charge the tenant for the cleaning, minor damages, ceiling damage and carpet damage?

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Benjamin AakerPro Member
Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
2y
The best answer will come from an attorney in your area but here is some general advice: The place should be left broom-clean (hopefully that is in your lease). Dust and trash and smudges will need to be cleaned. Hire a cleaner or find out the hourly rate and document your hours. Nail holes are probably wear/tear, but cat scratches are not. Nor are the stars in the ceiling. They do look cool, don't they? Until they have to come down. Whether you painted or not beforehand shouldn't enter into the decision. The damage had to be repaired, so I would charge the full amount. If you don't intend to replace or clean the carpet, then you shouldn't charge the tenant for it.
Hopefully you will learn from this to have a move in checklist, but its absence is not critical. Your pictures can be helpful.
In my state, I have to do an inspection and send a letter to the tenant that there will be some charges to their security deposit. Then, I do a full inspection and itemize all the damage repairs and send a letter to the tenant stating what was deducted, along with a check for the remainder. These have deadlines associated with them, so make sure you follow those.
In your unfortunate case, the amount probably exceeds your security deposit, so then you will have to decide if you will initiate a suit for damages. Again, you will need an attorney.
Often it comes down to risk/benefit analysis on whether to make a legal claim or not. With the photos, you probably have a claim. As to whether it would stand up in court, ask the attorney.
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  • Benjamin AakerPro Member
    Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
    2y
    The best answer will come from an attorney in your area but here is some general advice: The place should be left broom-clean (hopefully that is in your lease). Dust and trash and smudges will need to be cleaned. Hire a cleaner or find out the hourly rate and document your hours. Nail holes are probably wear/tear, but cat scratches are not. Nor are the stars in the ceiling. They do look cool, don't they? Until they have to come down. Whether you painted or not beforehand shouldn't enter into the decision. The damage had to be repaired, so I would charge the full amount. If you don't intend to replace or clean the carpet, then you shouldn't charge the tenant for it.
    Hopefully you will learn from this to have a move in checklist, but its absence is not critical. Your pictures can be helpful.
    In my state, I have to do an inspection and send a letter to the tenant that there will be some charges to their security deposit. Then, I do a full inspection and itemize all the damage repairs and send a letter to the tenant stating what was deducted, along with a check for the remainder. These have deadlines associated with them, so make sure you follow those.
    In your unfortunate case, the amount probably exceeds your security deposit, so then you will have to decide if you will initiate a suit for damages. Again, you will need an attorney.
    Often it comes down to risk/benefit analysis on whether to make a legal claim or not. With the photos, you probably have a claim. As to whether it would stand up in court, ask the attorney.
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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    2y

    @Mac Boeve Michigan statute requires you to provide a MoveIn Checklist to every tenant, which they have 2 weeks to complete and return.

    If you fail to provide one to tenant, it may exempt them from MoveOut Damages.

    If tenant fails to provide you a completed MoveIn Checklist, they assume all MoveOut Damages.

    If tenant fails to give you forwarding address within 4 days of MoveOut, you technically don't have to give them an Itimized List of Damages - meaning you can theoretically charge them for anything, any price.

    You should know, a judge may disagree with you if tenant takes you to Small Claims Court to challenge your SD deducations. 

    Here's your Michigan landlord "bible", read it several times and refer to it as needed:

    https://www.legislature.mi.gov/Publications/tenantlandlord.p...

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
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  • Mac BoevePro Member
    OP
    Rental Property Investor · Holland, MI · Member since 2020 · 26 posts · 4 votes
    2y

    Thanks @Benjamin Aaker &  @Drew Sygit

    The Move-in checklist is something I've been using, but inconsistently. I have yet to receive one back from a tenant, so I had not been diligent about providing one and/or documenting whether one was provided. I'm 50/50 whether or not I gave one to this tenant, so I'm assuming I did not. Lesson learned though, and I'll be sure I provide one every time.

    Typically I hire a company to clean the apartment after a tenant moves out. If the apartment was left in decent shape their base fee is $150-200, and that I would cover. Anything over $200 I would charge the tenant for. In this case I'm having the cleaning company itemize their bill to have a separate charge for cleaning the stained carpet, and I will be charging the tenant that amount for cleaning. I'll list some of the other items (like kitty litter spilled under the fridge and trash under the tub) but not charge for those. 

    On top of that I will be listing out every damage that was more than wear and tear, but only planning to charge for the ceiling and cat damage.

    I don't think I should have an issue with this holding up in small claims. What I failed to mention before is the tenant broke their lease early. I was fine with that as it's peak season now and their lease was through November. I have a text conversation where I state "that should not be an issue" but beyond that nothing documented stating I wouldn't be holding on to their security deposit. Because of that, I believe I can legally keep the entire security deposit. But I did implied during an in person conversation, that they'd get their security deposit back, if the apartment was left in good condition. So I only plan to charge them for the damages and additional cleaning fees. Do you think this is the best way to go about it?

    Thanks again!

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    2y

    @Mac Boeve Michigan statutes require a landlord to give each tenant a MoveIn Checklist - but, how does a landlord prove that?

    We do it by having two copies in every lease - one states "Landlord Copy", the other "Tenant Copy". We have the tenant initial the landlord copy when they sign their lease, to prove they got a copy.

    Regarding Early Termination by tenant, landlords cannot collect double rent and must make a good faith effort to find a suitable replacement tenant. So, landlord can only charge per diem until replacement tenant found, then previous tenant is relieved of any further rent liabilities.

    This is all pretty much covered in the booklet we shared the link for!
    RECOMMEND YOU READ IT!

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
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  • Mac BoevePro Member
    OP
    Rental Property Investor · Holland, MI · Member since 2020 · 26 posts · 4 votes
    2y

    @Drew Sygit

    I've been reading through the booklet. Thank you for sending that over.

    So if I fail to provide a MoveIn Checklist, the tenant legally can damage the property with no consequence? Even when I have relatively solid proof that the damage was caused by them and their cat?

    The tenant moved out on the 4th and I have yet to fill the unit. Mostly because of the repairs and cleaning that were needed. If I were to charge rent for those 20 days (or until the unit is filled), that would be greater than what I would charge for the repairs. 

    I had verbal conversations with the tenant regarding damages being deducted from the security deposit, albeit I did not provide the required MoveIn Checklist. I also had a verbal conversation with the tenant regarding not charging them for early termination, but there is nothing signed. Ethically I would feel better if I charged the tenant for the damages, but legally I have better claim if I charge them for lost rent.

    What would you do in this situation?

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    2y

    @Mac Boeve tenant would have to prove you never gave them one. 

    Charge tenant, but if the damages exceed the SD you will have to pursue the in Small Claims.

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
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  • Mac BoevePro Member
    OP
    Rental Property Investor · Holland, MI · Member since 2020 · 26 posts · 4 votes
    2y

    @Drew Sygit 

    Thanks, I appreciate all your input on this!

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