Tenant Leaves Without Cleaning, Can Landlord Charge Extra?
Question
The tenant of one of my units vacated as per the lease agreement, but left without making any attempt to clean. In addition, the carpet is seriously stained and otherwise damaged in several spots. Also, walls and blinds are damaged. I have a non-refundable cleaning deposit in addition to a security deposit. What can I charge the ex-tenant against his deposits?
Answer
Some states do not allow a separate cleaning deposit and some states prohibit making it non-refundable. Technically, any “deposit” is by definition potentially refundable if the tenant meets the terms of the lease agreement. In states where a non-refundable amount is allowed, it should be called a “fee” rather than a “deposit.” Finally, some states that allow other than a “security deposit” still limit the maximum total of all amounts collected to the maximum amount for a security deposit. For example, in some states a “cleaning fee” or a ”pet deposit” of $200 plus a “security deposit” equal to two months’ rent would exceed the legal limit if state law limits a security deposit to two months’ rent. I mention these potential issues because a knowledgeable tenant could use collection of excess deposits against the landlord when disputing the deductions taken from his deposits and might actually collect damages from the landlord if the matter went to court.
I’ll assume that a cleaning deposit/fee is allowed in your state, that it can be non-refundable, and that his rent was paid to the date of vacating (as you made no mention of rent being owed). If both rent and damages are owed, it can sometimes be important regarding the order in which deductions are taken from amounts held by the landlord.
In your case and under my assumptions you should apply all cleaning costs first against the cleaning deposit/fee amount. The reason for this is that some states’ laws state that if the amount of a cleaning deposit exceeds the cost of cleaning (as the term is generally understood) the excess cannot necessarily be applied against damages that are not considered cleaning. In such a case, the excess of the “cleaning deposit” must be refunded to the tenant. This fact is another reason that the amount collected for cleaning be called a cleaning “fee” rather than a cleaning “deposit” when such a fee is allowed by the particular state.
Absent a law that requires refunding of excess cleaning deposit amount, any excess could probably legally be applied against other items including unpaid rent and damage. If the entire cleaning amount collected is not enough to cover all cleaning costs, the excess cost would next be claimed against the security deposit.
Actual damages, including carpet and blinds but not including “normal wear & tear” would then be charged against the remainder of the security deposit. Damages in excess of the remaining deposit amount may be recoverable via a lawsuit.
It is important to understand that you cannot charge the tenant for the total cost of replacing the entire carpet in the unit. There are two different issues regarding this issue. First, depending on the floor plan and the location of carpeting, it may be considered acceptable to replace carpeting in only certain rooms. Second, wherever carpeting is replaced you cannot charge for the full cost of carpeting, but must allow for depreciation.
The percentage of cost of replacing damaged carpet that may be charged against the tenant is determined by dividing the number of years the carpet has been in service (including the period the unit was occupied by the tenant who damaged the carpet) by the useful life of the carpet. There is more than one number that might be justifiable for useful life, but it is usually least arguable to use the number of years warranted by the manufacturer.
As examples, assume a carpet that the manufacturer had warranted for 15 years. If the carpet was 10 years old when the tenant vacated the unit, the tenant can be charged 5/15 = 33.3% of the replacement cost. If the carpet had been new when the tenant moved in a year earlier, the tenant can be charged 14/15 = 93.3% of replacement cost. If the carpet was 14 years old when the tenant moved into the unit and the tenant remained for one year or more, the tenant cannot be charged any part of the cost of replacement.
Similar considerations must be given to window coverings, appliances, and other components of a rental that would be considered capital items (have a typical useful life of longer than a year) when they require replacement rather than repair.
Charges for damages to painted surfaces can depend on a number of factors, including specific terms of the lease agreement and whether the “damages” are actually “normal wear & tear” for which the landlord cannot charge a tenant.
Landlords should not try to charge a tenant for replacement when a repair can fix the problem. When charges for damages end up in court the judge is usually concerned that the landlord acted legally and was also fair and reasonable.
Finally, to avoid penalties that are potentially significant in some states, landlords should always provide detailed accounting (including documentation) of charges against deposits and do so within the period allowed by state law for return of deposits and/or an accounting of amounts not returned.