Author Topic: how much of the deposit to return...  (Read 3780 times)

FuckRx

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how much of the deposit to return...
« on: September 28, 2013, 12:12:44 PM »

I had a tenant stay in my condo for 2 years. They kept everything really well, great tenants. I didn't buy the condo but just a few months ago and the tenants moved out just a few days ago. They gave a 2950 deposit and ended up staying an extra 10 days and had a monthly rent of 2450. The place needed just some touch up paint and everything is fully functional. I paid my maintenance guy $100 to do the touch ups. There was a water bill for 90 that just came through. Anything else to consider?
Keys I have.
Garage openers I have.
Can't think of anything.

Russ

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Re: how much of the deposit to return...
« Reply #1 on: September 28, 2013, 12:19:50 PM »
Not a landlord, but I would make sure they pay for their extra stay (partial rent, plus whatever utilities they used) and give back everything else. I can't see the paint through the internet, but it sounds like a $100 touch-up is "normal wear and tear"

It sounds like you bought the place in the middle of their tenancy? Read the lease and that should give you a good idea of what was agreed upon by the previous owners.

impaire

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Re: how much of the deposit to return...
« Reply #2 on: September 28, 2013, 01:02:02 PM »
Not a landlord, but I would make sure they pay for their extra stay (partial rent, plus whatever utilities they used) and give back everything else. I can't see the paint through the internet, but it sounds like a $100 touch-up is "normal wear and tear"

Agree. Putting the $100 on their deposit sounds unfair to me--this should be part of your cost of doing business. The rest, they used, they pay, that's fine.

Did you consider doing the touch-ups yourself? At that amount it sounds like it's probably wasn't a crazy amount of work, and you probably could have lowered your turnaround costs to a fifth of what it ended up being.

FuckRx

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Re: how much of the deposit to return...
« Reply #3 on: September 28, 2013, 06:44:12 PM »

ok wait want to make sure I understand, so I shouldn't charge them for that $100? I could have done the work myself but I work a lot of hours at work and my hourly pay is higher than what I would have paid the maintenance person and he already had the paints and equipment. It would have been a waste of resources for me to go purchase paint and equipment just to do little patch jobs.

oldladystache

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Re: how much of the deposit to return...
« Reply #4 on: September 28, 2013, 06:51:18 PM »
You shouldn't charge them for normal wear and tear. Touching up the paint is normal. If they damaged something it comes out of the deposit. They didn't damage anything.

rocklebock

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Re: how much of the deposit to return...
« Reply #5 on: September 28, 2013, 06:54:11 PM »
Check your local landlord/tenant laws, too. My rental property is in an area that has very specific laws about what landlords can do with security deposits, and requires exhaustive documentation of everything.

Another Reader

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Re: how much of the deposit to return...
« Reply #6 on: September 28, 2013, 07:11:06 PM »
If your lease calls for them to reimburse the water bill, then yes, you deduct for that.  Rent is chargeable for every day they continued to occupy the place and did not turn the keys back to you.  Touch-up paint is normal wear and tear.  You cannot charge for normal wear and tear.  If that's all you had to do, you had great tenants. 

FuckRx

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Re: how much of the deposit to return...
« Reply #7 on: September 29, 2013, 10:05:40 AM »
thanks guys this was very helpful.

dragoncar

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Re: how much of the deposit to return...
« Reply #8 on: September 30, 2013, 02:24:42 PM »
Check your local landlord/tenant laws, too. My rental property is in an area that has very specific laws about what landlords can do with security deposits, and requires exhaustive documentation of everything.

Definitely this.  But even in the absence of specific rules, this is what I would do:

Refund full deposit.
Charge separate rent for holdover days.
Write off painting as a business expense.  Most LL paint between tenants anyways so new tenants will like the place. 

Sounds like you had great tenants.  Give them good recommendations if ever called.

weston

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Re: how much of the deposit to return...
« Reply #9 on: September 30, 2013, 02:46:13 PM »

I had a tenant stay in my condo for 2 years. They kept everything really well, great tenants. I didn't buy the condo but just a few months ago and the tenants moved out just a few days ago. They gave a 2950 deposit and ended up staying an extra 10 days and had a monthly rent of 2450. The place needed just some touch up paint and everything is fully functional. I paid my maintenance guy $100 to do the touch ups. There was a water bill for 90 that just came through. Anything else to consider?


As Rocklebock mentioned earlier you had better check your state landlord/tenant laws. In my state if the deposit was designated as a security deposit then it can only be used for damages caused by the tenants. If you withhold deposit funds to pay for the extra 10 days without the tenant's written agreement you would be looking at a lawsuit in my state.

rocklebock

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Re: how much of the deposit to return...
« Reply #10 on: October 01, 2013, 07:54:07 PM »
If you withhold deposit funds to pay for the extra 10 days without the tenant's written agreement you would be looking at a lawsuit in my state.

Same here. We are also legally obligated to keep security deposits in an interest-bearing account that isn't used for anything else. And we have to pay tenants a set interest rate (which could be different than the actual interest rate on the account) on their deposit, due once a year.