When your tenants move out at the end of their lease, you may notice that the property looks different than when they first moved in. It’s natural to wonder if they should be charged for the changes. However, the distinction between normal wear and tear and tenant-caused damage is crucial.
Normal Wear and Tear vs. Tenant Damage
Tenants are accountable for any damage resulting from negligence, misuse, or abuse. However, normal wear and tear is simply the expected deterioration that occurs naturally over time, without any fault of the tenant. For instance, tenants cannot be held responsible for the effects of aging on the property, and it’s unreasonable to expect them to prevent this kind of wear.
It’s important to familiarize yourself with state and local regulations, as they can vary widely. Below are some general guidelines regarding what constitutes normal wear and tear versus damage:
Carpet
- Normal Wear and Tear: Minor shoe scuffs in high-traffic areas and light stains.
- Damage: Severe pet stains, large holes, or burn marks.
Walls
- Normal Wear and Tear: Small scuff marks, minor scratches, and small nail holes (typically no more than two per wall) from hanging pictures.
- Damage: Large holes, significant gouges, or excessive scrapes can justify charging the tenant. Additionally, if tenants paint the walls without permission, you may need to charge for repainting or priming those areas.
Cleaning
- Not Charged to Tenants: If a tenant forgets to clean one drawer in the kitchen.
- Charged to Tenants: If tenants leave the property in an unclean state, most leases permit charging them for cleaning costs. If you typically charge a cleaning fee, this should cover any necessary cleaning.
Missing or Switched Appliances and Fixtures
If tenants replace appliances or fixtures or remove them entirely, you can charge them for the replacements.
Assessing Damage Charges
Every item in your rental property has an expected useful life—an estimate of how long it should last before requiring replacement due to age. If the item’s useful life has expired, you cannot reasonably charge tenants for its replacement; that becomes the landlord’s responsibility.
Conversely, if the useful life has not expired, you can charge tenants a prorated amount for damages they caused. For instance, if a carpet is expected to last five years but needs replacement due to tenant damage after three years, you could charge them for two-fifths of the cost of the new carpet since you lost two years of potential use.
Documentation Is Key
Always document the condition of your property before tenants take possession. While many landlords only photograph existing damage during the move-in walkthrough, capturing images of the property’s original state can be invaluable if disputes arise later.