{"id":14184,"date":"2024-02-15T05:00:31","date_gmt":"2024-02-15T10:00:31","guid":{"rendered":"http:\/\/rentprep.com\/?p=14184"},"modified":"2024-03-14T12:38:12","modified_gmt":"2024-03-14T16:38:12","slug":"damage-wear-tear-security-deposit","status":"publish","type":"post","link":"https:\/\/rentprep.com\/blog\/property-maintenance\/damage-wear-tear-security-deposit\/","title":{"rendered":"Wear and Tear vs. Tenant Damage: Navigating Security Deposit Deductions"},"content":{"rendered":"
Navigate the fine line between wear and tear and tenant damage with ease. Discover the key distinctions that safeguard your investment and ensure fair security deposit practices.<\/span><\/p>\n When tenants move out of your property, the property will look different than when they first moved in. The security deposit returns to the tenant may be affected when considering damage and wear and tear.<\/span><\/p>\n Why is that?<\/span><\/p>\n The law allows landlords to deduct portions of the security deposit to cover the cost of damages caused by a tenant. However, landlords cannot deduct from the security deposit to repair everyday wear and tear or the average depreciation of a property.<\/span><\/p>\n There’s one big problem with this for many landlords: It’s hard to determine what is considered normal wear and tear vs damage in many situations. Wise landlords soon learn the difference to avoid tenant disputes and receive fair compensation for actual damages.<\/span><\/p>\n Do you know how to recognize the difference between these two types of damage and why it matters so much? Today, you can learn just that.<\/span><\/p>\n When managing your first rental or getting deeper into the rental business, you\u2019ll need to learn how to differentiate between damage and wear and tear. Beginning with these topics will help set the necessary foundation for your future growth.<\/p>\n All rental properties will suffer some deterioration, even with the best of tenants. Wear and tear is the inevitable decline of a property’s overall condition due to time and usage.<\/span><\/p>\n There is nothing wrong with wear and tear happening to the property. High-quality components will wear out more slowly, but everything eventually degrades and needs to be replaced. By being used, things like the sinks in your property are gradually breaking down.<\/span><\/p>\n These changes are expected to happen while a tenant lives on a property. The longer a tenant lives in a rental property, the more cases of wear and tear you should expect to see around the property when they move out.<\/span><\/p>\n As these are natural changes in the property and not caused by neglect or misuse by the tenant, the tenant should not be held responsible.<\/span><\/p>\n What is considered normal wear and tear encompasses the expected deterioration of the property’s condition from daily use, such as faded curtains or loose door handles, not resulting from tenant misuse. You’ll see a complete list below, but these are some of the most common types of wear and tear seen at rental properties:<\/span><\/p>\n Should normal wear and tear affect the amount of the security deposit that\u2019s refunded to the tenant?<\/p>\n No; it should not. These common wear and tear issues should never be deducted from the tenant\u2019s security deposit. Instead, landlords should plan on covering these costs involved in refurbishing the rental unit for the next tenant.<\/p>\n As mentioned, normal wear and tear is something that happens through the regular use of the property. The items are not degrading because of any mistake by the tenant; they simply have a limited usage lifetime.<\/p>\n For that reason, you are not able to withhold anything from the security deposit to cover the cost of repairing any normal wear and tear issues before you rent the property out again. Instead, you should budget the expected cost of repairing these types of things into your overall business model so they do not detract from your profits.<\/p>\n As you gain more experience turning over properties, you\u2019ll have a better basis for understanding what you can expect from wear and tear.<\/p>\n Should normal wear and tear affect the amount of the security deposit refunded to the tenant?<\/span><\/p>\n No, it should not. When assessing the security deposit wear and tear, landlords must differentiate between unavoidable aging of the property and tenant-inflicted damages, ensuring fairness in deposit deductions.<\/span><\/p>\n Ordinary wear and tear issues should never be deducted from the tenant’s security deposit. Instead, landlords should plan on covering these costs involved in refurbishing the rental unit for the next tenant.<\/span><\/p>\n As mentioned, normal wear and tear happens through the regular use of the property. The items are not degrading because of any mistake by the tenant; they have a limited usage lifetime.<\/span><\/p>\n Therefore, you cannot withhold anything from the security deposit to cover repairing any normal wear and tear issues before renting the property out again. Instead, you should budget the expected cost of repairing these things into your overall business model so they do not detract from your profits.<\/span><\/p>\n As you gain more experience turning over properties, you’ll have a better basis for understanding what you can expect from wear and tear.<\/span><\/p>\n The best way to understand normal wear and tear is to break things down into smaller categories. As you know, there are a lot of different areas that make up an entire rental unit! Looking more specifically at subcategories can help you understand normal wear and tear. Below is a comprehensive list of normal wear and tear for renters, including faded paint and minor carpet wear, assisting tenants to understand what’s considered acceptable changes to the property over time.<\/span><\/p>\n When considering flooring, you can understand <\/span>what normal wear and tear<\/span><\/a> is and what tenant damage is by thinking about the lifetime of the type of flooring.<\/span><\/p>\n High-quality hardwood floors, for example, have a lifetime of around 20 years. It would be expected to see light wear and fading from sunlight on the floors, but a large hole or gouge would be unexpected damage. Charging tenants for hardwood floor damage involves evaluating the damage extent against the floor’s expected lifespan, distinguishing between repairable wear and significant damage requiring full replacement.<\/span><\/p>\n Carpet, on the other hand, only has a lifetime of five years and should be replaced by a landlord at this time.<\/span><\/p>\n The following conditions are common types of wear and tear in flooring:<\/span><\/p>\n Anything that can happen through the continual use of an item cannot be considered tenant damage. However, issues like cracked tiles or ripped-out floorboards caused by excessive force or neglect are considered damage.<\/span><\/p>\n Paint naturally wears out; most paint jobs last around three years.<\/span><\/p>\n The following are considered normal wear and tear:<\/span><\/p>\n Unpatched holes, excessive marks, or painting over the rooms in an unapproved color can all be considered tenant damage as they go above and beyond what would typically happen. Everything has to be judged case-by-case, but you will gain some perspective over time.<\/span><\/p>\n Like the other items covered, you’ll want to consider the useful life of the appliances provided in your properties. A freezer, when kept up properly, for example, can last for 15 or 20 years. If you just replaced a freezer last year, and it’s now suddenly broken, that may be a case of tenant damage.<\/span><\/p>\n Of course, appliances are complex items that can sometimes break without any apparent cause. These cases can be difficult to stomach, but the tenant should not be blamed for appliance durability issues. Instead, consider ensuring the appliances are properly maintained and insured to reduce the impact of such occurrences.<\/span><\/p>\n Certain parts of the plumbing system will naturally wear out from regular use. Plumbing has regular small leaks from fittings and washers wearing out. These should be easily replaced as part of routine maintenance. Faucets and showerheads can wear out over time from mineral buildup; that is also a natural problem.<\/span><\/p>\n However, a large stain on the floor or ceiling from an unreported large leak or overflowed tub would not be normal wear and tear. Similarly, broken toilet bowls, seats, or lids are not expected issues and should be considered tenant damage.<\/span><\/p>\n As you can see, each category has many similarities in thinking about natural wear and tear. Think about the following for each area or item:<\/span><\/p>\n All of these things should be clear to you, and you should communicate the necessary aspects to your tenants through the lease agreement. This will help to prevent miscommunication.<\/span><\/p>\n Understanding what is considered damage to a rental property is crucial; this includes damages like broken windows or significant carpet stains resulting from tenant abuse or neglect.<\/span><\/p>\n Damage to a rental property<\/span><\/a> occurs due to unreasonable use, abuse, or accidents. This can also include intentional alterations the tenant made without approval. Even if the tenant didn’t do the damage but rather one of their guests did, the tenant is still responsible for the cost of repairs.<\/span><\/p>\n Tenants are responsible for damages that exceed the scope of normal wear and tear, such as holes in walls or broken appliances, which are not covered by the lease agreement. In some cases, tenants will report damages when they happen. In other cases, you will discover them upon tenant move-out.<\/span><\/p>\n Wear and tear refers to a property’s natural and inevitable deterioration due to everyday use, such as faded paint or minor floor scuffs. Tenant damage involves harm that exceeds regular use, like significant holes in walls or broken appliances, which landlords can deduct from security deposits. Understanding these differences is crucial for fair security deposit management and avoiding tenant disputes.<\/span><\/p>\n What are the common types of damage at rental properties? Below is a list of damages landlords can charge tenants for, including 10 of the most common problems in rental properties. This list outlines several common damages, including cracked tiles and unauthorized paint jobs, clarifying the financial responsibilities tenants face for repairs beyond the scope of everyday use.<\/span><\/p>\n A landlord damage charge list should itemize repair costs for damages beyond normal wear and tear, providing transparency and accountability in how security deposits are utilized for repairs. All of the below issues are likely to be considered tenant damages and should be charged accordingly:<\/span><\/p>\n What happens to the security deposit once you have determined tenant damages at the property?<\/span><\/p>\n There are a few things that need to be done.<\/span><\/p>\n First, you’ll want to ensure clear documentation of the damages. If you do a <\/span>move-in and move-out inspection<\/span><\/a>, you can keep both on file as proof of the damages. Documentation is essential in case the tenant challenges your claims.<\/span><\/p>\n Next, you must estimate how much it will cost to replace or repair the items. Some states require that you have a quote from a third-party repair party; others allow you to detail the cost based on averages.<\/span><\/p>\n In all cases, you need to be sure you only charge the tenant for the applicable amount of damage caused rather than the total cost of the item.<\/span><\/p>\nKey Takeaways:<\/b><\/h3>\n
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A Table Of Contents On Wear And Tear Vs Damage<\/strong><\/h2>\n
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<\/a>What Is Wear And Tear?<\/strong><\/h2>\n
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<\/a>List Of Normal Wear And Tear Examples For Renters<\/strong><\/h3>\n
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<\/a>How Does Normal Wear And Tear Affect The Security Deposit?<\/strong><\/h3>\n
<\/a>Security Deposit Guidelines: Distinguishing Between Wear and Tear and Deductible Damages<\/b><\/h2>\n
<\/a>What Is Considered Normal Wear And Tear?<\/h2>\n
<\/a>Guidelines for Charging Tenants for Floor Damage: When Is It Justifiable?<\/b><\/h3>\n
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<\/a>Normal Wear And Tear To Walls<\/strong><\/h3>\n
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<\/a>Normal Wear And Tear To Appliances<\/strong><\/h3>\n
<\/a>Normal Wear And Tear To Plumbing And Fixtures<\/strong><\/h3>\n
<\/a>Normal Wear And Tear To Other Items<\/strong><\/h3>\n
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<\/a>What Is Considered Damage To A Rental Property?<\/strong><\/h2>\n
<\/a>What distinguishes wear and tear from tenant damage in rental properties?<\/b><\/h2>\n
<\/a>Tenant Damage Charge List: 10 Common Damages and Estimated Repair Costs<\/b><\/strong><\/h3>\n
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<\/a>How Does Damage Affect The Security Deposit?<\/strong><\/h2>\n
Document The Damages<\/b><\/h3>\n
Estimating Costs<\/b><\/h3>\n