Inspect the Unit Before Tenants Move In
One of the most crucial factors involved with being able to charge a tenant for damage actually occurs before the tenant moves in. The move-in inspection documents the condition of the rental property at the time a tenant takes possession of the property, including any existing issues. Consider making a checklist that will help serve as proof that the unit and fixtures were in good condition when the tenant moved in.
Factors To Consider When Determining Damage
Repairs tend to be so specific that it can be difficult to put together a standard list of potential repair costs for your property. One tenant might flush a diaper down the toilet and cause the entire main sewer line at the property to back up. Another might do the same thing and only cause the toilet to temporarily overflow. But that could cause water damage to the ceiling of the tenant on the floor below. Whatever happens, you should investigate each repair to determine the specific cost. Here are a few factors you’ll want to take into account.
Age of the item: Was the item that was damaged brand new, or had it been in the property for several years?Original cost of item: How much did the item cost when it was originally purchased? Was it a $20 smoke detector or a $500 vanity?Repair or complete replacement: Does the repair involve fixing a small part of the item or replacing the whole thing? Will you just be replacing the vanity top or will the entire vanity need to be swapped out?Length of time to complete repair: Does the repair simply involve going to the store to get a replacement part, or will it be a four-day process to retile the bathroom floor?Special skills needed: Will you have to hire someone to complete the repair, such as a licensed plumber or electrician, or can you do the work yourself?
Check Your State’s Security Deposit Laws
Keep in mind that security deposit laws can vary by state. For example, Florida’s statutes clearly delineate exactly what a landlord can potentially deduct from a security deposit, and it requires 30-day notice to the tenant.
You Can’t Charge for Normal Wear and Tear
Landlords can charge tenants for damage caused, but they cannot charge tenants for normal wear and tear. Normal wear and tear occurs because of ordinary use, while damage occurs because of abuse or neglect.
Examples of Wear and Tear vs. Damage
Consider these examples of wear and tear versus damages.
Get Various Contractor Estimates
You may want to get two or three estimates from different contractors for repairs that require you to hire someone else to do the work. You can also use websites like HomeAdvisor to get an estimate of the average costs in your area. Its True Cost Guide may help you with estimates. HomeWyse also allows you to estimate material costs, installation costs, and maintenance costs in your ZIP code.
Provide Copies of Receipts
You must give tenants a copy of the receipt for materials and labor used to complete the repair if you charge them for it. You must provide them with a good-faith estimate of how much it will cost to complete the repair if you haven’t yet completed it.
Give an Itemized List of the Damage You Charged For
You must provide the tenant with an itemized list of all damage and the cost of each repair when you take deductions from their security deposit. The list must be included when you return the security deposit amount owed back to the tenant. You must include any relevant receipts or estimates for work. You must also send them a written notice of the damage they’ve caused at the property and an invoice giving a breakdown of the amount they’re responsible for paying if you discover the damage during their tenancy. Again, you must include any receipts, and actual or good-faith estimates.
Pros and Cons of a Standard Cleaning and Repair List
Some landlords include a list of standard repair costs in their lease agreements. This list details different types of damage and how much you’ll charge the tenant to repair it. You might state “Replacing Missing Smoke Detector: $40” or “Replacing Broken Glass in Window: $150.” But there are pros and cons to this approach.
Pros Explained
The upside to using a repair cost list is that tenants will be aware of how much you’ll charge them for specific damage. The tenant might have a hard time disputing the cost of such repairs in court if they signed the repair list and agreed to these amounts as part of the lease,
Cons Explained
The downside is that you may have a hard time being able to charge more than the amount on the list if the repair turns out to be more extensive than expected. And tenants may not be as careful or worry about thoroughly cleaning the apartment when they move out if they feel the amounts you charge for such repairs are small.
