How to deduct damage from a security deposit.

This is a question we are frequently asked: If there is damage, can I deduct from the security deposit?

The short answer is, yes! If there is damage to the property beyond "normal use" wear, you absolutely can deduct the repair costs from the security deposit.

To start, we need back up. When on-boarding a tenant, there are two critically important steps:

  1. Do the correct paperwork (apartment Condition Statement) when taking the security deposit and open the proper escrow account at the bank in the tenant's (Security Deposit Receipt) name.

  2. Document the unit's condition before tenants move in with pictures and, better yet, video.

Here is what to do if there is damage to the unit:

Once the tenant has moved out, immediately document the damage with photographs and video.

Keep all the receipts for the repairs and document all said repairs. Provide a security calculation sheet with the deductions, include copies of receipts and any other supporting documentation (pictures, etc.).

Some examples of deductible damages:

  • Burned or ripped carpets in events that are not normal wear and tear

  • Stained and broken tiles or damaged flooring resulting from splitting wood or other damaging activities

  • Large and excessive marks or holes on ceilings, walls, and cabinets

  • Missing curtains, blinds or windowpanes, and screens

  • Broken household appliances due to negligence and misuses, such as overloading the washing machine and dishwasher

  • Broken doors, windows, locks, and handles

Non-deductible damages:

  • Minor stains and depreciation on the property because of wear and tear

  • Faded paint

  • Tack holes or small nails in walls

  • Warped doors or windows caused by prolonged exposure to heat, snow, rain, and sunlight

Keep in mind that damage costs and cleaning expenses are not limited to the lists above.