How much of my renter's deposit should I deduct for these?

Question

I have a $3400 deposit from my renters for the home they rent from me. It was in top shape when I rented it out to them 16 months ago...they sitll want to stay on lonnger, but I am already worried about the damages - there are holes (small ones) in the walls, the brand new kithen cabinets are so worn out and the gloss worn out, the grate in the tile is all black, there are pen marks on the wall from their children, things are just "banged up." Can I keep the full deposit to professionally have all these repaired? (it's a million + dollar house, in LOS ANGELES). They're still renting, but it stresses me out everytime I go there (to have various things repaired/replaced usually out of abusive use of the item).

Answer 1

If these folks are causing that much damage to your property, it's time to speak with them and advise them that you WILL be charging them for all these issues when they move out.  Approach them courteously and ask for additional security deposit money to cover the issues.  If they refuse, you can't force them to cough up.  BUT, you will have placed them on notice that you will not tolerate this level of damage to such an expensive property.  It MAY move them to learn to take better care of the property, as well as urging them to repair the damages they have already caused.

Meanwhile, if all fails, you can only keep their entire deposit (if the damages exceed the deposit) and sue them for the balance due in small claims court.

Answer 2

Legally you can keep the deposit, so long as on move out you provide a rundown of the costs to repair the place to show you didn't pocket any of the money.

Frankly if they are destroying the house like that, I would kick them out immediately, repair the problems and find better renters. If you own a million dollar house in LA, you can get better renters. Don't let them run it down into the ground. If they have ruined the cabinets, you've lost $30,000 or more depending on the cabinet type alone.

If it bothers you this much it's time to find new tenants. Good luck!

Answer 3

You can deduct over and above "normal wear and tear" as damages.  Holes in the walls and pen marks on the wall are not ordinary.  You also have the right to demand that the house be returned in the same state you rented it in.  That means cleaning up the entire home such as carpet cleaning and grout cleaning.  Other things are subjective and you can try to deduct them and see what happens.

You can also charge them for various things that you repaired or replaced due to abuse as you replace or repair them.  Those charges you can deduct from the deposit and then demand that they replenish the deposit.  If they refuse to replenish the deposit that is grounds for throwing them out.  Good luck!

I just  read your "additional details".  There is no way you should pay for a toilet!!  Tell them to move right now!!  Get them out right now!!  The longer you wait the worse the damages are going to be!!  I know this from experience.  They are terrible tenants and, yes you can sue them for damages over and above the deposit and you probably should.

Answer 4

First, you have to separate normal wear and tear from damage. What you're describing does sound mostly like damage, versus ordinary wear-and-tear. Still, you have to make some allowances.

Having said that, it does sound like they're being somewhat rough on the place. You might speak to them about it.

While I'd keep an eye on the continuing damage, I wouldn't use the deposit at this point. And, depending on your lease, you may not be entitled to. Some of the things you mentioned are very likely to reoccur if they stay there, so your choice really comes down to continuing to rent to them, gritting your teeth when you go over there, or allowing the lease to expire, using some or all of their security deposit for repairs, and getting new tenants.

One nice thing about many tenants is that they don't call to complain about things like holes in the wall or pen marks that they've caused. At worst, after maybe 3-4 years they'll ask if they can have the interior repainted. When that's occurred with my rentals, the question is whether they can repaint if I pay for the paint. And that's fine with me--the conditions being that they don't damage anything with the paint and that, if I request, they'll restore the walls to the original color when they move out.

As I said, on the spectrum of tenants, yours sound a bit on the damaging side. But, frankly, if they're paying on time and not causing major damage, I'd let them stay. You've got a reasonable security deposit, along with basically sound tenants. If they left, you'd have a vacancy, and there's no guarantee your new tenants would be any better.

So, keep an eye on the situation. If at some point you think the security deposit might not cover the repairs, you can ask for more (whenever the lease is up). But what you've described is fairly minor: the pen marks and the holes in the wall are correctable by spackling and painting...and you'd probably have to do that anyhow if you got new tenants in there. The grout is probably just mold or mildew. A good cleaning with a mild bleach solution will take care of that.

In response to your added information (added while I was writing my response), you also have to "train" your tenants properly. For instance, they should pay for repairs that they are responsible for, such as the plugged up toilet. However, that has to be made clear in your lease. Some landlords put in their lease that the first $x (often $25 or $50) of repairs will be paid by the tenant, then the remainder by the owner. Replacing batteries: No. That's their responsibility. You've trained them poorly by doing things that they ought to be doing. You should also get a homeowner's warranty. They cost about $400, and cover most major and many minor systems in the house. There's something like a $65 deductible for any call. So you make the tenants responsible for the first $50; the homeowners warranty picks up anything over $65, so your maximum exposure is $15. Or make the tenants responsible for the entire deductible. There are a lot of good resources at MrLandlord.com ( http://www.MrLandlord.com ).

Hope that helps.

Answer 5

Have all the work done & take it off of the $3,400 deposit! Be fair! That way you can show them exactly how much it cost to have the items repaired.

Answer 6

They can be late on rent. You send the 3- day notice. then you DO NOT accept further rent....