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: 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. If you retain any portion of the security deposit, the tenant may be able to recover substantial damages. You should review the lease with an attorney prior to making any deductions.
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