Security deposits are the most common technique used by landlords to try and ensure their tenants do not damage their properties. They are also, after evictions, the biggest point of contention between landlord and tenants. Deducting the costs for repairs from security deposits is often filled with aggravation for both sides. Here is how you can best manage this process to get what you deserve without exacerbating the situation.
Be Honest About Damages
The first thing you have to do is be honest. You can only charge the tenant’s security deposit for actual damages caused directly by the tenant’s actions. Many landlords try to use security deposits to repair normal wear and tear. You cannot do that. For one it is likely illegal and second it is the point that will create the most contention.
I discussed normal wear and tear in a previous post. Anything beyond normal wear and tear is damage, and unless that damage was your fault, the tenant is likely responsible for it. What are some examples of tenant damage?
- Cigarette burns on the floors.
- Doors pulled from their jams.
- Cracked toilet tanks.
- Crayon markings on the walls.
These items and much more are not normal wear and tear, and you should charge your tenant to have them repaired. How you charge your tenant however can make your life easier, or much more difficult. Let’s look at some techniques to make your life easier.
Keep Good Records
The first things you need are good records. You need records of the condition of the property when the tenant moved in. These should be in both written and video format and they both should include the tenant’s acknowledgement.
Develop a written checklist on the condition of the property. Send it to your tenant for their approval soon after they move in. Ask them to review the conditions on the checklist, note any unlisted damages, sign the form and return it to you. Explain to them that this checklist will be used when they move out to assess any further damages and charges to their security deposit. Most will pick up on this checklist’s importance, fill it out and get it back to you.
You should also shoot a video of the property when the tenant moves in, because pictures can speak a thousand words. Do this while you are moving the tenant in and include them in the video if you can. It will be very difficult for them to make claims about the property’s condition later on that are different from those depicted in the video, especially if they are in it.
These two forms of record keeping are vital to you. They can prevent a highly contentious “he said, she said” situation later on.
Upon Move Out
Once your tenant has vacated your property and released possession back to you, go in the property to inspect and assess for damages as soon as possible. Use your checklist and video records to assist in this inspection. Create a detailed list of any and all damages including reasonable charges to fix them.
Depending on where you live, your tenant may have a right to be present at this inspection. Here in Tennessee tenants have that right. But they have to request to be present at the inspection and they have to make this request within four days of vacating the property. Your state laws may be different. Understand your local laws to be sure you do things correctly.
Once you have your list compiled, send a formal copy along with a letter explaining its contents to your former tenant. This letter could also contain a check for the amount of the security deposit to be returned. If you are honest and have kept the records mentioned in this post, your former tenant will likely say little if anything about the charges you levy.
Ever get into a fight about a security deposit? Share your experience with a comment.
Authority Property Management says
We show tons of rentals per month and share in this same opinion. The kitchen can make a huge difference in a properties rentability.
Kevin says
Yes they do. Bathrooms too.
Thanks for reading and taking the time to comment,
Kevin