When Tenants Leave Property Damaged, What should Landlords Do?
Question
Where would I find information on a tenant who left the place damaged, dirty, etc. We had to use all of his security deposit to fix and clean everything. He still owes us over $300.00 and said he would pay. Can you help? Thanks.
Answer
There are a lot of potential issues related to your problem. Significant issues might be (1) which state your rental property is located in, (2) the specific terms of the lease agreement, (3) exactly what fixing and cleaning you did, (4) what you have done regarding accounting for the unreturned security deposit, and (5) exactly what you have done regarding the $300 you feel he owes you. I do not have information concerning your case regarding most issues, so I can only answer in generalities.
You will need to check the laws for your specific state. The most current and accurate information regarding deposits is usually available via the web site for the state where the rental is located. I will, however, briefly discuss some important issues regarding your question.
Laws regarding security deposits vary among states. Most states have specific statutes that (1) limit the maximum deposit that can be collected from a tenant by a landlord, (2) specify what the things can be deducted from the deposit for – usually unpaid rent and damages, but possibly other things, and, in some states, (3) how/where the deposit can held and/or the rate of interest, if any, that must be paid by the landlord, and (4) the necessary accounting regarding the deposit that must be provided to the departed tenant, the time within which it must be provided, and the penalties for not providing the accounting in accordance with state law.
The statutes of most, although not all, states specify maximum security deposit amounts that can be collected from a tenant. The maximum is usually stated as a multiple of the first month’s rent, typically one-and-a-half or two times. Some states allow a larger deposit for furnished units or an additional deposit for a tenant having a water bed.
Many states consider any amounts collected other than first month’s rent (e.g., last month’s rent) to be included within the maximum allowable deposit no matter what the landlord might call the funds – e.g., cleaning deposit. Some states also include any pet deposit in the maximum, other states do not. Most states will allow the landlord to allocate funds collected among different categories of deposits as long as the total of all amounts collected is not more than the allowable maximum.
In general, an amount called a deposit is potentially fully refundable if the tenant pays all rents owed and does no damage to the property – normal wear and tear cannot be treated as damages. Most states will not allow a landlord to avoid the maximum limit by calling the amount a “fee” instead of a “deposit.”
It is advised that landlords have written/signed move-in and move-out check lists proving that the tenant did the damage and failed to leave the unit as clean as he found it (photos are also useful) and proof of costs of correcting damages.
Most states require landlords to provide a detailed accounting to the departed tenant for amounts not refunded upon termination of tenancy. Most states require that the accounting and any refund due must be provided to the departed tenant within a certain time following the end of tenancy, typically from 7 to 30 days. A few states require the accounting only if the departing tenant provides a forwarding address or only if the tenant specifically requests it.
It is particularly important that landlords follow the rules regarding return of and accounting for any portion of deposits not returned because many states have serious penalties if the ex-tenant pursues the matter in court. Penalties can include disallowing any deductions from the deposit and/or double or triple damages. Although it is probably possible for a landlord to file a lawsuit for unpaid rent and damages even if subjected to penalties, it will be more costly and may depend on a judge’s opinion regarding allowing such a suit after the landlord has been penalized for failing to follow the law.
If you have followed all relevant state laws, have followed procedures that will allow you to provide proof of your claim, and have provided a written demand for the $300 amount – either within the accounting documentation you provided or via a separate demand letter – you should be able to file a lawsuit for the amount owed plus costs of the lawsuit.