Wear and Tear Versus Damage
Real Property Management’s informative series on rental home management addresses many of your questions about being a landlord, including a crucial topic: Wear and Tear – What Is Normal?
Security deposit funds belong to the tenant, and the landlord must return this money when the tenant leaves the property in acceptable condition, minus normal wear and tear, as required and defined by state law.
Wear And Tear
Normal wear and tear is the physical deterioration that occurs with regular use. Wear and tear generally excludes occupants’ or their guests’ negligence, carelessness, an accident with, or abuse of the premises, fixtures, or chattel property. Normal wear and tear refers to the deterioration or depreciation that occurs through ordinary and reasonable use.
Other signs of everyday wear and tear are worn electrical switches, frayed pull strings on blinds, lightly scuffed hardwood floors, loose caulking, peeling wallpaper, faded curtains, and dirty window screens. Time and regular daily use can cause any of these items to become worn, which does not constitute damage.
Damages
When a tenant causes damage beyond normal wear and tear, a landlord has cause to charge the tenant for the damages. This may include damages inflicted by the tenants, their guests, or pets.
- Matted carpet or furniture impressions are signs of wear and tear; burned or stained carpeting indicates damage.
- A few small nail holes are a result of wear and tear; large holes in the walls constitute damage.
- Fading or yellowing of paint is wear and tear; large stains on the walls and ripped wallpaper is damage.
One way to mitigate permanent and expensive damage is to address regular maintenance issues promptly as they arise, rather than allowing them to go unaddressed. For instance,
- If you have a leaky window that allows rain to blow in, have it repaired before it damages the woodwork around the window or the flooring.
- If you have a dripping kitchen pipe, have it repaired before it causes the wood under the sink to rot.
- If the wall behind a door is missing a doorstop, expect that the doorknob may punch a hole into the wall.
Reasonableness of Wear and Tear
State law often defines the reasonableness of wear and tear, which typically depends on the length of the tenants’ residency. For instance, if the tenants lived in the property for three years, it may be reasonable to expect to paint the walls and clean the carpets. If the tenants have lived in the property for six years, it may be reasonable to expect to replace the carpeting. The property owner typically bears the costs for everyday wear and tear maintenance.
Many courts will allow you to prorate the useful life of a damaged item. If the court determines that the useful life of carpeting in a rental dwelling is five years, then the cost of replacing the carpeting would need to be prorated over that five-year period. You cannot charge the former tenant the full replacement amount if items are past or well into their life expectancy.
Keep in mind that the security deposit belongs to the tenants, and you act as an escrow agent to hold and manage the tenants’ deposit. However, the funds may revert to you at the end of the tenancy if you make a successful claim against the deposit (in compliance with local and state laws) or the tenants have otherwise forfeited the deposit through a violation.
Expectations and Documentation
Move-In:
- Set clear maintenance expectations
- Walk through the property with the tenant
- Document and photograph all existing issues
Move-Out:
- Conduct a walkthrough with tenant
- Compare the condition to the move-in notes
- Document any changes or damage
Security Deposits
- Give tenants opportunity to repair issues first
- Only deduct for actual damage (not normal wear)
- Follow state laws for notices and refunds
- Keep detailed records to prove condition changes
Why It Matters: Poor documentation can lead to legal liability and costly repairs at your expense.
You must specify security deposit deductions to cover damages or cleaning in a letter to the tenants, which should include a list of deductions and an explanation for each specific item. Some states require copies of itemized receipts for materials or professional services, including your labor at a reasonable hourly rate.
Real Property Management is the nation’s leading property management business. We understand both sides of the security deposit dispute and are familiar with the processes for settling tenant claims lawfully and professionally, eliminating the guesswork for you.
