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I have a tenant moving out of a Sec.8 property after staying there 6 years. Tenant gave me $1,000 security deposit 6 years ago.
Am I liable to return 100% of the deposit back to tenant upon move out?
some details:
When this tenant moved in, I installed new carpet and new paint in house.
During the 6 yrs, I have spent $3,000 in repairs to the house
(hot water heater, new bathroom flooring, fix water leaks, plumbing, misc)
When she moves out: (costs: $2,500 to get ready for new tenant)
carpet is heavily stained in several areas
carpet is torn/roughed out in 2 areas (needs to be replaced)
house will need general cleanup
walls have some scratches/stains/spots from general use (new paint)
So, question is, based on the condition she is LEAVING the house..... Am I obligated to give her back 100% of deposit or can I hold back 50% or 80% ?
Everything you have described sounds like normal wear and tear (aside from the stains). I would say that yes, you are required to give her 100% of the deposit back, unless she has destroyed something. You might be able to keep a little if the heavy stains don't come out, but if that carpet has been there for 6 years, it has lived a good life and it's time for you to replace it anyway.
All of the costs associated with readying the place for a new renter bear no relevance to her security deposit. Those are costs associated with being a landlord, above and beyond a security deposit. The same is true of the money you have put in for repairs while she has lived there. You are the owner, and thereby responsible for upkeep of your property. It's part of the cost of being a landlord, and has nothing to do with the renter's security deposit.
A security deposit is for you to hold in case of damages upon move out that are not normal wear and tear. Please remember that the place has been lived in, and normal wear and tear is to be expected.
I hope you held her deposit in some sort of escrow account, so it doesn't hurt you to return her money to her. All too often landlords treat the security deposit as personal income, then desperately search for reasons why they shouldn't have to return the money on move out (because they have already spent it).
If there are genuine damages when she leaves, deduct that from her security deposit. Don't try to keep her money just because you haven't acknowledged the regular costs associated with being a landlord.
Last edited by sheriwx; 06-01-2009 at 12:07 PM..
Reason: to clarify
I have a tenant moving out of a Sec.8 property after staying there 6 years. Tenant gave me $1,000 security deposit 6 years ago.
Am I liable to return 100% of the deposit back to tenant upon move out?
some details:
When this tenant moved in, I installed new carpet and new paint in house.
During the 6 yrs, I have spent $3,000 in repairs to the house
(hot water heater, new bathroom flooring, fix water leaks, plumbing, misc)
When she moves out: (costs: $2,500 to get ready for new tenant)
carpet is heavily stained in several areas
carpet is torn/roughed out in 2 areas (needs to be replaced)
house will need general cleanup
walls have some scratches/stains/spots from general use (new paint)
So, question is, based on the condition she is LEAVING the house..... Am I obligated to give her back 100% of deposit or can I hold back 50% or 80% ?
thanks
For what purpose, other than actual damage, would you keep the deposit?
If this person did not have Section 8, would you not have had to replace the water heater, the bathroom flooring, or do the other repairs? You can't deduct these kinds of items from a security deposit unless it's either in the lease, or you have proof that the tenant actually caused the problem that was repaired. That's one reason why they rent... so that structural maintenance and repair of the residence is not their financial responsibility, but that of the owner.
Take out the amount of legally acceptable repairs (if the carpet needs to be replaced, etc), and she is due what is left over from the balance. Or putting it this way- You owe her $1000, unless you can prove that she damaged the property beyond normal wear and tear. A 6 year old paint job is not new now, even if it was new 6 years ago.
You are not obligated to give the deposit back, but you can only charge for something that is over what would be normal wear and tear
On a side note you said you repaired things like bathroom flooring be careful did you fix it or replace it.
Here is why http://www.irs.gov/pub/irs-pdf/p527.pdf see page 5
Carpet has a predetermined lifespan. Find out what the average is for yours. Typically, a court will rule that carpet has a 5-7 year lifespan.
When withholding deposits, you are only entitled to hold actual damages. So, you can't just "assume" what the costs will be nor can you deduct a percentage.
Honestly, 6 year old carpet just needs to be replaced anyway. Should they choose to fight it, you'll have a very tough time in court with that one. Courts always prorate out the lifespan and I've never seen a court go longer than 7 years.
Keep in mind you're talking about a renting environment here. It's not the same as your house. You can live on your carpet for 13 years because it's your carpet. But renters will not find it acceptable to live on 13 year old carpet that other people have lived on.
So the key now is finding out the life of your carpet. Get the make and call around to several carpet companies. Be sure to mention that it's in a rental. In fact, you may want to call companies that specifically sell and install carpet to apartment communities or other rentals so you're not misguided.
If your carpet is on the high side, then maybe you can get 1 year of damages out of them. If you are able to get some of the damages, what you'll need to do is take the total cost of replacement (and you must actually do the replacement and provide the tenant with a receipt), divide the cost by the lifespan of the carpet, and charge the resident for the number of years left in the life. That's all you'll be able to charge for.
BTW, the pet damage, while it isn't cool they had an unauthorized pet, doesn't matter in the eyes of the law.
If you decided that there is reason to charge offf for danage ;you need to documant it because it is way needed to prove in case of it going to court. I(ts going to have to be beyond normall wear and tear an depreciated because of it.Scratches and toher nrmal repairs are not counted just as in any normal sitaution. In other owrds it does have to be rerurn in new condition .
I have a tenant moving out of a Sec.8 property after staying there 6 years. Tenant gave me $1,000 security deposit 6 years ago.
Am I liable to return 100% of the deposit back to tenant upon move out?
some details:
When this tenant moved in, I installed new carpet and new paint in house.
During the 6 yrs, I have spent $3,000 in repairs to the house
(hot water heater, new bathroom flooring, fix water leaks, plumbing, misc)
So around $500 per year in maintenance. A little high, but not out of the realm of expected, especially if the house is a little older.
When she moves out: (costs: $2,500 to get ready for new tenant)
carpet is heavily stained in several areas 6 year old carpet is due to be replaced anyway
carpet is torn/roughed out in 2 areas (needs to be replaced) See above
house will need general cleanup Expected after a tenant moves out, as long as they leave it in reasonably clean condition.
walls have some scratches/stains/spots from general use (new paint) Normal after 6 years
So, question is, based on the condition she is LEAVING the house..... Am I obligated to give her back 100% of deposit or can I hold back 50% or 80% ?
thanks
Quote:
Originally Posted by pj94z
I've had carpet in my own house for over 13 years - and still in great condition It was possibly better grade carpet to begin with, but in any case, it is irrelevant. Case study =/= law
So, carpet lasting only 6 years is pretty funny to me.
The main damage would be this:
- The carpet has many stains (from a Dog which she was NOT authorized to have in the house..which is no longer in the house) See above. One note, if the dog urinated on the carpet, and you have to treat the subfloor in the process of replacing the carpet, the tenant can be held responsible for the cost of that.
- The carpet is torn and pulled out in some corners (probably the work of a dog?) See above
That's the only reason I'm thinking of holding back a % of the deposit... because of the damages to the carpet.
I assume it will cost me $250 to remove stains + $500 to "patch" the carpet where her Pet damaged it.
Otherwise, the rest is normal wear and tear.
Best case scenerio for you. If the carpet was rated to last 7 years, and the tenant occupied for 6 years, you are responsible for a minimum of 6/7 of the cost. The remaining 1/7 could be considered a tenant expense. So if the cost to replace the carpet is $1500, you could possibly charge the tenant $214. But you would need documentation showing the cost to replace, as well as something from the manufacturer stating the expected life of the carpet.
You can't base damages on a % of the deposit, they have to be documented expenses.
$3,000 over six years (an average of $500 a year) does not seem like a lot of money to spend maintaining a place. Also, I can't see how you would not expect to replace a carpet that has been lived in (on) for 6 years. Some LLs replace carpets after 4-5 years for their tenants who are still residing in their residence. I don't think that you have a case to keep the securiy deposit. Futhermore, how is it relevant that the tenant uses section 8? You were getting paid, right?
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