Various sources, May 2015
Every time a tenant moves out of a rental, property repairs are needed. Often the owner believes the tenant should leave the property as rent ready as when they moved in. Any experienced rental property owner or property manager knows this is not a reasonable expectation. But how much can a tenant be charged? What is considered normal wear and tear?
Per the attorney firm of Williams, Zinman & Parham PC tenants generally cannot be charged for items more than 5 years old as they are considered fully depreciated. Tenants can only be charged a pro-rated amount for items damaged. Tenants cannot be charged for pre-existing damages. The tenant cannot be charged for work that has not, or will not, be done.
So the question is how does a landlord prove the tenant did damage above normal wear and tear? How are pre-existing damages documented? Some things are a matter of opinion while others can be clearly documented. Here are some examples:
1) Flooring – Flooring, especially carpet, is typically the item that gets the most wear. Most landlords know carpet will typically have to be replaced every time a tenant moves. If the carpet is new when the tenant moves in and has to be replaced when the tenant moves out a year later the tenant can be charged for the cost of the replacement less 6% for depreciation. But the owner would have to prove the carpet was new. If the replacement cost is $1000 the tenant could be charged $940. If the carpet was 12 years old when the tenant moved in and has to be replaced when the tenant moved out the tenant could not be charged for the cost of replacing the carpet. Installation of more durable floor coverings like porcelain tile or vinyl are recommended as it will save the owner money in the long run.
2) Paint – Paint is typically scuffed up by tenants. Unless there are holes in the drywall and a majority of paint damage would be considered normal wear and tear.
3) Appliances – Appliances typically last more than 5 years but are still considered fully depreciated. A stove was 12 years old when the tenant moved in and was still functional when the tenant moved out. But it was dirty and had some discoloration and chips. The landlord cannot charge the tenant 100% of the replacement cost as the stove was too old. They could deduct for additional cleaning from the security deposit.
4) Slow Drains and Leaks – If there is a leak under the sink or slow drains this is the responsibility of the landlord not the tenant as this is a maintenance item. The only exception is if the tenant caused the drain to be stopped up or flushed something down the drain that caused the clog.
Documentation – The best way is to have a written record and photographs to support the condition both when the tenant moves in and out. However, the landlord and property manager have to be careful because the tenant can start asking for things to be fixed or changed costing the owner money. In addition, pictures do not always show all the damages as some things do not show up in photographs.
How to collect for damages – The only way to collect for damages is to take the tenant to court with iron clad evidence. This includes – receipts showing the original purchase of an item, receipt for replacement of an item, copy of the lease, documentation of the condition before and after the tenant occupied the property, photos before and after. Even if an owner is lucky enough to get a judgment, it is unlikely the tenant will ever pay a dime. The only recourse Landlords have is to turn the judgment over to a collection agency which typically keeps 50% of any money recovered. In addition Landlords need to be careful as tenants may come back and do a lot more damage if they are unhappy about getting a judgment. Owners need to weigh the cost of attorney fees and possible retribution by the tenant versus the cost of repairs.