Wear & Tear vs. Damages

[Justin Recca]

Many self-managing investors on Bigger Pockets have to handle security deposits and this can sometimes be challenging. We wanted to share our the experience we have gathered throughout the years by managing hundreds of properties throughout Orlando and Central Florida.

Security deposits can be used to repair damage for which a resident is responsible, however, Florida law mandates that the landlord cannot apply the security deposit to items that are considered “normal wear and tear.” As “normal wear and tear” is a somewhat ambiguous concept, it is ultimately up to a court should the landlord and tenant have a dispute as to any charges against the security deposit. The ultimate question therefore is, what is the difference between normal wear and tear and damages?

The following list of examples are intended as a guide to reasonable interpretation as to the differences between expected ‘wear and tear’ from normal residential use and irresponsible, intentional, or unintentional actions that cause damage to a property. While this list is not all-inclusive, it gives a good overview of the differences between normal wear and tear and damages.

Additionally, courts have also ruled that the length of time a tenant has occupied a property must also be taken into consideration when accessing damages in regard to deductions to a tenant’s security deposit. The longer a resident has resided in a property the more allowance or pro-rations must be given for wear and tear.

Notice that normal wear and tear does not include dirt – excessive dirt is considered negligence, carelessness, accident or abuse.

Wear and Tear		Damages
Small nail holes caused by a mechanical fastener (nail, screw, etc) utilized to hang or secure standard pictures, frames and other items on walls.		Larger holes from hanging shelving, large pictures, wall anchors, toggle bolts, flat screen television brackets or any other wall hanging that causes damage larger than small typical fastener.
Faded, chipped or cracked paint due to normal and expected wear of paint or deterioration of sheen over time. Imperfections caused by normal residential use-scratches, small blemishes, small chips, etc.		Spot painting, excessive patching or mis-matched paint resulting from poor touch up painting, unapproved painting of any kind done by resident. Excessive wear to painted surfaces outside of what would typically be expected.
Faded/mildewed caulking, silicone or other sealants around the bathtub, tiles, sinks, countertops, vanities, etc.		Missing caulking around the bathtub and tiles, excessive mildew or water damage, unreported issues potentially.
Hard water deposits or stains in sinks, tubs, showers, etc.		Buildup of dirt, mold, mildew, or water stains from a preventable or unreported water leak or drip at a fixture or in wet areas or water damage to hard surface flooring resulting from unreported leak or issue.
Worn out or deteriorated finishes on deadbolts, locksets, handle sets, loose or stubborn door locks, loose hinges, handles, cabinet pulls, knobs, etc.		Broken, lost or unreturned keys, broken door locks, hinges, handles, cabinet pulls, knobs not resulting from normal wear and tear.
Door sticks in frame from settling or old/worn weather-stripping needing replacement.		Damage to a door, frame or trim from forced entry, pull-up bars, striking, etc.
Worn, matted carpeting in traffic areas resulting from the normal movement of people through a property.		Torn, burned, stained, missing, ripped, scratched or snagged carpet or any damage resulting from a pet, authorized or unauthorized. Excessive traffic wear and damage resulting from neglect or failure to take precautions to preserve flooring. Scratches in hard surfaces caused by pets, moving furniture, abuse, etc.
Faded or worn finish on wood floors, especially in traffic areas. Normal wear and tear on other flooring types such as linoleum, vinyl, LVP, laminate, etc.		Scratched, gouged, warped or water damaged wood floors or other flooring types resulting from resident negligence or abuse.
Worn countertops or cabinetry over time due to daily and typical use.		Burned, cut, stained, scratched or water damaged countertops, cabinets, vanities, etc.
Drywall cracks from settling		Holes in walls, drywall, doors, screens or windows from misuse, negligence, carelessness, accident, or abuse.
Loose wallpaper		Ripped or marked-up wallpaper
Worn, faded or heat blistered mini-blinds.		Broken, bent, cracked window coverings, missing slats, wands or hardware. Broken strings or any damage resulting from a pet.
Dirty window and door screens.		Torn or missing screens, bent frames, etc.
Sticky or worn window mechanicals		Broken windows, frames or abuse resulting in poor function.
Loose, worn or inoperable faucet handle		Broken, scratched, damaged or missing faucet handle
Running toilet		Broken toilet seat, tank top, handle or chipped, cracked or damaged toilet bowl, tank or seat.
Musty odor		Urine or pet odor throughout unit
Closet bi-fold door off track or needing adjustment		Damaged or missing bi-fold door, knob, track resulting in poor function.
Old, expired, or non-functioning smoke or CO detector (not resulting from damage)		Missing or detached smoke detector or CO detector or missing batteries
Non-functioning light or electrical fixture		Missing, burnt out, or incorrect style light bulbs or damage to a fixture resulting in non-function.
Dry, brown lawn or landscaping (not resulting from neglect or failure to water or tampering with irrigation or timer)		Lawn with pet urine spots, dead areas, excessive weeds, lack of irrigation as a result of neglect or tampering with irrigation or timer settings.
Slow/no draining drains		Drains that are clogged by hair, toys, or other non-flushable objects

[Will Fraser]

This is a very useful list, @Justin Recca!  

How is it considered an inalienable right to hang things on the wall?  The idea of "normal size fasteners" being normal wear and tear on a 6-month or 1-year lease shows some of the silliness at play in the industry.  So . . . tenant hangs something on the walls . . . picture wall in the living room, 5 things per bedroom, and of course holiday lights and a cute mirror.  Then promptly at 12-month they move out.    Next tenant moves in and says what?

What are some ways you safeguard your owners from the need to re-paint each turnover or deal with other issues in the gap between normal wear & tear and tenant damage?

[Terrell Garren]

[Justin Recca]

Hi Will and thank you for the reply and kind! There are many ways we safeguard owners in this regard, a few of which I outline below and while not all-inclusive, these may be the most important and first things that come to mind: 

First, and perhaps most importantly, the setting of expectations is critical and we outline very clearly our expectations of the resident as well as what they can expect from us prior to their moving in. This sets the stage for the remainder of the relationship and we feel this is a critical step in the process. Ours consists of a 15-20 minute "move-in meeting" whereby we review the main components of the lease, the physical care of the property, inspections and what we expect during the term of our relationship and in turn, what they can expect from us. I think this rather simple step allows for a much more positive relationship with the resident throughout the term of the lease and avoids much confusion upon move-out.

Secondly, we are firm but fair when making a security deposit claim against the resident's security deposit. Another critical step is the timely filing of the claim as believe it or not, that is often overlooked by many managers and even more private owners. Another critical piece is the inspection we conduct just prior to their taking occupancy as well as that conducted upon their vacating. In each case, our managers complete an extensive electronic checklist of items that catalogs the condition of every square inch, appliance, fixture, flooring, paint, etc. both interior and exterior. This is then accompanied by a full suite of photos and video taken capturing every square inch and both are then archived in perpetuity in our system. The same inspection is conducted upon their vacating and each are compared and used in the event a claim is necessary. This evidence allows us to process claims easily and efficiently with little to no push-back from the resident. 

Another method to mitigate issues with normal wear and tear and damages is to conduct regular inspections of the property. During these inspections, we identify any items that are concerning and address them immediately including excessive wear and tear, overall cleanliness, damages as well as any lease issues we may note such as unauthorized pets or residents. Truthfully, our portfolio is fairly high-end so we don't have too many issues with deposit claims and rarely with excessive wear and tear or damages fortunately. I do also credit much of our (and our owners) good fortune to our team's efforts in overseeing and managing the properties; they are truly very diligent and conscientious in their efforts and the condition of our properties is a direct reflection of that!

Finally, in regard to your specific question, we take several measures regarding paint, holes in the wall from pictures, TV's etc. beginning with the type of paint and color we use. In the overwhelming majority of our properties we utilize the same color palette and also use a high quality paint in flat finish which allows for very easy touch up with no "flashing" as would be experienced when touching up any paint with a sheen (satin, eggshell, etc.). Other brokers and I have an ongoing debate about the merits of flat paint vs a paint with a sheen but in my experience flat is the way to go. Additionally, most apartment communities and hotels use flat paint for this very same reason. We also provide the residents with a list of items in advance of their move-out outlining our expectations of the move-out process and the condition in which the property will be turned back over to us. One of those items outlined is to leave any nail holes or minor cosmetic paint or drywall issues alone which then allows our maintenance team to repair properly and with very minimal effort. Often and in my experience early on, if you allow or require residents to repair even small nail holes from a picture, they'll use a 6" putty knife and what was a minor blemish that could be covered easily and touched up now becomes a drywall refinishing effort and thus we've found that by having residents leave those items to us we can repair and touch up in minutes and at no cost to them!  Makes for an easier turn and by not having to repair their poor attempt at a repair, we avoid the inevitable issues and headaches associated with making a claim for that entirely, frees them up from having to worry about repairing anything and makes life easier for everyone involved!

Hopefully, I've answered your questions and happy to speak further offline if you like as always looking to exchange ideas and best practices to make the job of property management easier!

[Alberto Nikodimov]

Very detailed and generous reply! @Justin Recca
Setting expectations and having a process you follow is a key in our industry!