What can be charged or deducted from a tenant security deposit
As a landlord or property manager, it's important to know what you can and cannot deduct from a tenant's security deposit. Here are some key points to ensure you handle security deposit deductions fairly and legally. If a tenant fulfills their lease term and has paid all rent due, you may only deduct the actual cost of repairing any damage they have caused to the property. It’s important to distinguish between damage caused by the tenant and normal wear and tear.
Ordinary Wear and Tear vs. Damage
While the specific damages that can be classified as normal wear and tear vary by state and jurisdiction, the Department of Housing and Urban Development (HUD) provides a list of examples (see the table below). Further, per HUD, landlords should note "the costs an owner incurs for the basic cleaning and repairing of such items necessary to make a unit ready for occupancy by the next tenant are part of the costs of doing business." Click here for more information.
-Normal Wear and Tear:
“Normal or Ordinary wear and tear” are terms commonly used in the context of rental properties. They refer to the natural deterioration that occurs from ordinary use of the property by a tenant, not to damages caused by tenant neglect or abuse. This includes minor issues that occur naturally over time with regular use of the property, such as small scuffs on walls, worn or slightly dirty carpets, and faded paint. Determining what constitutes ordinary wear and tear can vary on a case-by-case basis. That said, in general, a tenant cannot be charged for replacing items like carpets, plumbing, or appliances that may have aged naturally & show normal usage.
-Damage Beyond Normal Wear and Tear:
Tenant damages usually require more extensive repair, and at greater cost than “normal wear and tear”, and are often the result of a tenant’s abuse or negligence that is above and beyond normal wear and tear. If the tenant’s mistreatment of an item causes it to wear out unusually quickly, you may charge them for the extra wear they caused. However, this does not mean charging the entire cost of replacement but only the cost attributable to the excessive wear. E.g if a tenant damages a 3-year-old sofa provided by the landlord, the tenant could be charged the cost of replacing the value of that 3-year-old sofa, not the entire cost of a brand new sofa.
HUD examples of normal wear & tear include:
| Normal Wear & Tear: | Tenant Damage: |
| Fading, peeling, or cracked paint | Gaping holes in walls or plaster |
| Slightly torn or faded wallpaper | Drawings, crayon markings, or wallpaper that the landlord did not approve |
| Small chips in plaster (drywall) | Seriously damaged or ruined wallpaper |
| Nail holes, pin holes, or cracks in wall | Chipped or gouged wood floors |
| Door sticking from humidity | Doors ripped off hinges |
| Cracked window pane from faulty foundation or building settling | Broken windows |
| Floors needing coat of varnish | Missing/damaged fixtures |
| Carpet faded or worn thin from walking | Holes, stains, or burns in carpet |
| Loose grouting and bathroom tiles | Missing or cracked bathroom tiles |
| Worn or scratched enamel in old bathtubs, sinks, or toilets | Chipped and broken enamel in bathtubs and sinks |
| Partially clogged sinks caused by aging pipes | Clogged or damaged toilet from improper use |
| Dirty or faded lamp or window shades/blinds | Torn, stained, or missing lamp and window shades |
Cleaning & Maintenance
Routine cleaning and maintenance are integral parts of tenant turnover and the overall management of rental properties. These tasks, including standard cleaning, minor repairs, and general upkeep, are expected responsibilities for landlords and should factored into the regular costs of property management. Per the Department of Housing and Urban Development (HUD), it is important to note that expenses for routine cleaning and maintenance cannot be deducted from a tenant's security deposit, as they are considered part of maintaining the property's standard condition for future occupants and are considered part of the costs of doing business. Click here for more information. See below for more information about the difference between standard and cleaning & beyond normal wear and tear:
-Routine Cleaning & Maintenance:
Routine cleaning & maintenance costs, such as bedroom vacuuming, re-painting, or carpet cleaning between tenants are not deductible. Per law, tenant security deposits cannot be deducted for routine cleaning and maintenance. These are expected expenses that come with preparing a property for new tenants.
Please note: General tenant turnover services (regular cleaning & inspection) and Alcove’s tenant turnover service cost are considered normal wear and tear and cannot be deducted from the tenant's security deposit.
-Deep Cleaning & Maintenance Beyond Normal Wear & Tear:
If a tenant leaves the property in a condition beyond normal wear and tear, requiring extraordinary cleaning or restoration measures, landlords may deduct the associated costs from their security deposit.
By adhering to these guidelines, you can ensure that your handling of security deposits is fair, transparent, and legally compliant. This not only protects your interests but also fosters a positive relationship with your tenants.
Frequently Asked Questions:
Can a landlord deduct for cleaning?
As stated above, for routine cleaning, a landlord cannot deduct for cleaning from a tenant's security deposit, even if the property is not returned in the same clean condition as when the tenant moved in. The extent of cleaning required can vary:
-Standard/Normal Cleaning: General dusting, vacuuming, and wiping down surfaces are not be deductible as these are considered normal tasks landlords should perform regularly between tenants.
-Heavy Cleaning: Deep cleaning carpets, removing severe stains, and addressing neglected areas (e.g., grease buildup, mold) may be charged & deducted from the security deposit.
Can a landlord deduct for carpet cleaning?
Generally no, Landlords are responsible for cleaning the carpet in a rental property. In between tenants, the carpet should be professionally cleaned to help extend the useful life of the carpeting. This includes highly trafficked areas such as stairs & hallways. However, heavy stains or damage to carpets that require additional cleaning or cleaning expenses greater than those for normal room turnover may be deducted from the tenant security deposit.
Can a landlord deduct for damages to drywall from screws or nails?
Yes, depending on the extent. Small nail holes caused by a 6-penny nail or smaller are not deductible. Repairs for larger holes from hanging shelving, pictures, screws, wall anchors, flat-screen television brackets, or any other wall hanging that causes damage larger than a 6-penny nail are deductible.
Can a landlord deduct for lost keys or lock changes?
Yes, a landlord can deduct for the cost of replacing lost or unreturned house & bedroom keys, mail keys, or key fobs/cards, and garage remotes, that were provided with the unit.
How much can landlords charge a tenant for damages?
Most states don’t have a specific limit for how much landlords can charge for damages, only that the amount must be considered reasonable and itemized in a receipt.
Questions about security deposit returns? Reach out to the team at partner@alcoverooms.com for assistance.