Property damage guide and move outs

With time and tenant occupancy, rental properties naturally experience wear and tear. It's crucial to distinguish this from tenant-caused damage due to negligence or misuse. Responsible property management involves addressing wear and tear, like minor scuffs and faded paint, through repairs. However, property owners are not liable for damage caused by tenants.

In this informative article, we will delve into the differentiation between normal wear and tear and property damage within a rental property context. We will provide insights into effectively documenting and making deductions for damage-related expenses from a tenant's security deposit. Whether you're a landlord or a tenant, understanding these aspects can contribute to a smoother and more transparent rental experience for all parties involved.

Turnovers when renewing with Doorstead

If your tenant is vacating your property and you are renewing with Doorstead we will manage the entire turnover process, including:

If your tenant is moving out and you are terminating your relationship with Doorstead, we will transfer management and the security deposit funds to you for your management of the Move Out Walk Through report, repairs and to return the tenant’s security deposit.

If you would like Doorstead to manage the move-out before you off-board, please let us know! A flat fee of $1,000 applies. We kindly ask for payment before the tenant moves out so we can finalize the rest of the off-boarding process and return your property to you as quickly as possible.

Please note: Doorstead will manage the tenant-responsible repairs as part of this process but all owner-responsible repairs will need to be managed by the owner.

Helpful tips for landlords: Differentiating between Wear and Tear versus Damage

For landlords, it's crucial to differentiate between the normal wear and tear that naturally occurs and actual harm done to your property. This distinction is essential not only to safeguard your property investment and financial interests but also to ensure the safety of your tenants within the premises.

Typically, routine wear and tear might involve tasks such as repainting the apartment, addressing bathroom and kitchen tile maintenance, floor buffing, and thorough cleaning. On the other hand, significant damages like wall holes, broken windows, or carpet tears are the responsibility of tenants. These issues go beyond the effects of aging and indicate intentional harm or neglect. To help you navigate these distinctions, we've compiled a list of common items found in rental properties, accompanied by clear guidelines on how to identify normal wear and tear versus property damage.

Wear & Tear

Owner-Responsible

Scuffed hardwood floor

Carpet wear or minor stains from normal use

Dirty tile grout lines

Minor scuffing or small nail holes on walls

Dent in wall from door handle

Loose doorknob or sticky lock

Minor holes in window screen

Damage

Tenant-Responsible

Gouge or cut in hard flooring

Tears, burn marks or holes in carpet

Excessively dirty kitchen

Wall holes larger than a dime

Scribbling or writing on walls

Missing doorknobs or broken fixtures

Tears or shredded window screens

Recurring property maintenance issues are Wear & Tear and therefore owner-responsibility. Appliance issues can be a problem area for properties as they often get a lot of use, owners make the needed maintenance repairs but the issue persists or reoccurs with regular use by the tenant. Some situations we’ve encountered

In all these situations, the owner is still responsible for the additional maintenance costs.

Tenants do play a pivotal role in maintaining the property's condition as well. Any property damage during tenancy, move-out or routine checks becomes the tenant's responsibility. This could encompass issues like floor or wall gouges, significant stains on carpets and countertops, or holes in walls and ceilings.

For a clearer understanding, refer to the table below outlining the distinction between normal wear and tear in a rental and tenant-caused damage. This knowledge will empower both landlords and tenants to foster a harmonious rental experience while preserving the property's quality.

Item

Average life expectancy

Normal Wear & Tear

Tenant Damage

Carpet

5 years

Carpet faded or worn thin from walking

Holes, burns or heavily stained  carpet or ripped carpet due to pets, abuse or negligence

Hardwood Flooring

20 years

Minor to moderate scratches

Chipped or gouged wood floors

Tile Flooring

50 years

Loose grouting and bathroom tiles

Missing or cracked bathroom tiles

Paint

3 years

Scuffing from regular use. Fading, peeling, or cracked paint from foundation settling.

Drawings, crayon markings, or wallpaper that owner did not approve

Walls

lifetime

Nail holes, pin holes, or cracks in wall, small chips in plaster

Gaping holes in walls or plaster

Windows

15 years

Cracked window pane from faulty foundation or building settling

Broken windows

Window Shades, Screen or Blinds

3 years

Dirty or sun damaged window covers.

Missing window covers, ripped, torn or broken slats on blinds.

Ceiling

lifetime

Scratch from moving furniture

Holes in ceiling from removing fixtures

Refundable pet deposits are commonly used by landlords as a means of safeguarding against potential damages caused by pets. The purpose of a refundable deposit is to provide a financial safety net for landlords, ensuring that any necessary repairs or cleaning resulting from pet-related issues can be covered.

Pet deposits are refundable based on the condition of the property when the tenant moves out. If there is no pet damage, it must be returned. Non-refundable pet fees are illegal in some states please check with your state and local jurisdictions if you have more questions.

Housing providers cannot charge someone with an Emotional Support Animal or Service Animal a ‘pet deposit’ or ‘pet rent’ or any other fee because of the animal’s presence. In addition, a housing provider may not require someone with an ESA or Service Animal to obtain liability insurance covering the animal. However, an individual with an ESA or Service Animal may be required to cover the costs of repairs for damage the animal causes to the premises, excluding wear and tear.₁

Security deposit laws vary state by state and can change over time. It’s important to stay up-to-date on the allowable deductions.

Doorstead requires itemized receipts to withhold from the security deposit. Doorstead will not reimburse owner-managed vendor repairs or owner completed repairs while Doorstead manages the Security Deposit return and repair process.

Below is an example of security deposit deductions at move out.

As property managers, we focus on making decisions based on sound reasoning and experience. Landlords don't like to pay for repairs, but tenants also want their security deposit returned. Overzealous landlords are why we have so many laws to protect tenants.

Materials are expected to deteriorate over time, therefore, major components such as appliances and flooring have a depreciable life and general life expectancy. Not all flooring, blinds, appliances, and paint are the same, but definitely, a range of time exists for how long materials hold up under the average tenant. We use our experience and local guidelines plus HUD recommendations to determine what is the allowable life expectancy for items.

As tenants pay rent, they are paying for the use of all the components inside a residence. This means the landlord is receiving compensation for the use of those components. Therefore, if a tenant damages something, we cannot charge the tenant the full cost to replace something unless the item is new. Repairs for damage are generally charged at 100% of the cost to the tenant, but replacements are prorated based on life expectancy and current age.

Utilizing proration for replacement costs is industry standard for property managers and required by state and local-specific security deposit guidelines. If an item needs to be replaced due to tenant caused damage, it must be prorated based on the usable life of the item being replaced. See the example below for paint.

The painting will cost $850 and the life expectancy of paint is 3 years. $850/3= $283.33 cost of paint per year. The paint is 1 year old, so it has lost 1 year of life. Using the proration equation, we multiply the number of years we missed out on (2) by the cost per year ($283.33). Thus, the tenant owes $566.67. To prorate damages, we must be able to prove the time of purchase with a receipt.

Our goal is to be fair to all parties involved regarding repair costs and responsibilities at turnover, as well as, maintain compliance with all local, state and federal housing regulations. But tenants and owners still may disagree with the responsibility of repair costs.

Setting reasonable standards for return of the security deposit prevents problems and also follows the intent of the landlord tenant laws.  If a tenant challenges security deposit charges in court, we need to be confident you have a solid chance at winning. We want to prepare you with great documentation so that you can exude professionalism and demonstrate your supported reasoning for the charges. Going to court is costly for an owner because you have to gather all the documentation to present in court, travel to court, sit in court to wait your turn which can take hours, and yet still have a chance at losing more money based on the opinion of the judge.

Please keep in mind, we cannot go to small claims court for you. If the tenant files in small claims court you will have to appear if you are named in the complaint. If the tenant names Doorstead in the complaint we will have to appear, but as stated in your Property Management Agreement, you will be responsible for paying any judgment amount awarded to the tenant.

Washington State changed regulations that went into effect July 23rd, 2023 that impacted tenant-landlord relationships. Please see the notice attached below.

Keep in mind, if your lease states a 21-day timeframe for deposit returns, that's the timeline you should adhere to until the lease is updated.