Advice needed on Rent Deposit usage
Question: We just purchased a house which was rented out. We decided to buy with the existing tenants to save the deal. Now the tenants are moving out and I need to know what I can legally deduct from their deposit. We asked for an initial walk-thru list from the seller, he said that he had never done one. We overlooked this since we were getting a good deal on the place. So, we obviously can’t deduct for a broken tile or things that the tenants are claiming was already there when they moved in. But can I deduct for carpet cleaning, general cleaning and painting the place? They have been there for 11 months (6 mo lease and then month to month) and the house is located in California. What is the definition of ‘wear and tear’? How clean should the house be when they move out? Should they legally be given the option to paint/clean themselves before we hire someone? (ie. should we tell them that we’ll be doing this stuff and deducting from their deposit?)
Also, they had an oral agreement with the seller that they will pay $50 less than what the rent on the lease was in exchange for taking care of the yard. Well, the whole grass area was yellow when we visited yesterday.
I would appreciate any advice.
Answer: I think the key sentence above is the second one..”We decided to buy with the existing tenants to save the deal.” Since that is what you decided, stick with the deal. Had you had the tenants removed, you would have had a better possibility of getting the place fixed to your standards. But that is not the direction your deal went. You have no initial walk-through, you only recently bought the house, and you bought it in an ‘as is’ condition apparently. The tenants made their deal with the previous owner, not with you. I assume he was satisfied with their tenancy, as he let them stay past their lease requirements, and made no demand for any type of payment or compensation for damages. These are the types of things that will influence a judge in court. They almost always favor the tenant in these type agreements. There would have to be blatant damages for them to go with a new landlord. I think you will soon find out what it means to buy a house ‘as is’. It means as you saw it when you bought it. If you can swing a deal with the tenants, that is the way to go…if not, then you got what you bargained for. Besides, a little elbow grease is good for the soul. Peace, The rental unit should be clean. However, without an initial move-in checklist from the seller, you will have a difficult time proving the tenants did any damage. Painting and a reasonable amount of nail holes etc is considered normal wear and tear.
Did you do a walk through at the time of purchase and make a list of deficiencies? You bought the property in the condition it was in when you signed the contract/closed the deal. You cannot, at least to the best of my knowledge go back and claim against the tenants for previous damages.
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