Landlords and tenants alike will often ask what is allowable as a security deposit deduction at the conclusion of a tenant’s lease agreement. Some aspects of California law are quite clear on this topic, others are a bit hazier.
Clear:
According to California Civil Code § 1950.5(b)(2), when a tenant terminates their lease and vacates the property, the landlord can deduct costs incurred to repair damages caused by that tenant as a charge and deduction from the tenant’s security deposit.
Hazy:
According to the same California Civil Code § 1950.5(b)(2), these charges can only be taken for damage beyond ordinary wear and tear.
So, herein lies an important question regarding security deposit deductions …. what does “normal wear and tear” mean?
From my experience, common sense judgment should rule the day. Sometimes I’m in the difficult position of having to explain this to both the tenant and the landlord. The security deposit cannot be used for repairing property defects or deterioration caused by normal daily life at the property. The security deposit also can’t be charged for any conditions if they existed at the time that the departing tenant moved in or if a property item is beyond its “useful life”. Another good rule of thumb is the measure of obvious neglect, misuse, or abuse that may have led to property damage which would be cause for security deduction.
Applying my “common sense rule” to the above, maybe these examples will help:
- Matting or frayed carpet in high traffic areas or small stains in select areas is wear and tear; Burned or badly stained carpet is damage.
- Small nail holes where pictures were hung are wear and tear; large holes or areas cut open in the walls is damage.
- Smudges and scuffs on walls are wear and tear; large stains or permanent stickers applied on the walls is damage.
Looking to an official government source, the U.S. Department of Housing and Urban Development (HUD) weighs in on this topic on pages 55 and 56 of a document titled Special Claims and Processes Guide (June 2006) which can be found at this link: http://www.hud.gov/sites/documents/HSG-06-01GHBGUID.PDF
According to HUD, Tenant damages usually require more extensive repairs and at a 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. To summarize the HUD guidelines, please consider this table:
NORMAL WEAR AND TEAR | TENANT DAMAGE |
Small nail holes (6 penny/2" nail or less), pin holes, natural cracks in wall, small chips in plaster | Gaping holes, large holes from bolts or anchor screws, screws left in walls, HDTV brackets left on wall, areas cut open or large dents in plaster |
Fading, peeling, scuffed, or cracked paint/wallpaper, areas where tenant has filled small holes with DAP | Drawings, decals/stickers, crayon markings on walls, spot painting of wrong color or unapproved paint/wallpaper |
Doors sticking or not closing properly due to age or humidity | Doors removed or ripped from hinges |
| Worn out keys, loose or sticky door locks or handles | Broken, unreturned or missing keys or locks, damage to door from forced entry or attempts to enter with improper tools |
Cracked window pane from settling of building | Broken Window |
Carpet faded, frayed or worn thin in high traffic areas | Torn or ripped carpet, burns, large stains, or blatant pet damage, permanent pet urine stains in carpet or pad |
Small scratches or fading from sun in wood flooring in select areas ; vinyl foor fading or worn thin in traffic areas | Gauges in wood flooring, areas of unreported water damage or excessive scratches throughout from pet damage; cuts, holes or gauges in vinyl flooring |
| Calcified, rusty or hard water spots on water faucets/fixtures, shower rod, or loose faucet handle | Build up of dirt, mold, mildew, or water stains from a preventable or unreported water leak, missing shower rod which had been installed by landlord, broken or missing faucet handle |
Loose grouting and bathroom tiles | Cracked or missing bathroom tiles |
Worn or scratched enamel in old bathtubs, sinks or toilets | Chipped, broken, or cracked enamel in bathtubs, sinks, and toilets |
Partially clogged or slow draining sinks and toilets | Clogged or damaged sinks and toilets from improper use and care |
Faded, worn or yellowing lamp or window shades | Torn, stained, or missing lamp and window shades |
Worn or blistered mini-blinds, frayed or worn blind draw strings, pullies, or chains | Broken, bent, cracked or missing mini-blind slats, wands or hardware. |
| Slow running drains | Drains proven to be clogged by nonflushable objects such as toys, tooth brush, feminine products, or baby wipes |
| Musty smell in home near ocean or in subterranean rooms/areas and closets | Pet odor, smell of pet urine, cigarette/smoke odor or cooking odors throughout the home from cooking without ventilation or stove fan |
| Nonfunctiong or nonexitent smoke or CO detector; nonfunctioning light fixture or switch | Missing or detatched smoke or CO detector with no batteries; missing, burned out, or mismatched style of light bulbs |
| Dry lawn or areas in the yard maintained by landlord's gardener which are overgrown or dying | Lawn with excessive pet urine burns or other pet damage to landscape, dead areas of landscape cause by waste disposal such as paint or chemicals |
These types of decision can easily become the genesis of a tenant and landlord dispute. Because of this, many owners of rental homes leave these matters to professional property managers like North County Property Group. We've seen a lot, can make good recommendations, and work with both the tenant and owner for logical and reasonable interpretation of security deposit laws. Call us today to learn more about our property management services and programs!
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