At Complete Management Services, we strive to offer the most thorough and helpful resources for our clients, whether investor property owners or rental tenants. Follow this series of property management tips for more resources.
If you are a property owner or a renter, you may be questioning whether a property condition is just normal wear or whether it is considered property damage. This is an important question. Clear, objective definitions will help you at your final walk through and in any decisions about security deposits and reasonable claims.
When a property rental concludes, a walk through is a typical final step. During this process, you may find worn carpeting, nail holes in walls, loose bathroom tiles or rusty or worn fixtures or appliances. You may also detect broken or chipped flooring or trim, larger holes in walls, missing or cracked tiles, or other more obvious or significant damage. For each instance, depending on your expectations, these may seem like more or less significant issues. How do you agree on what is worthy of a claim against a security deposit?
Check Your Lease
First, your lease agreement may already have guidelines or a reference document included. This is the best option, an already agreed-upon arrangement with set conditions outlined. This often is not available or included, or you may be in a situation with a “middle ground” question. If your lease doesn’t reach this level of detail, other sources are available to help you reach a determination.
Examples of Wear vs. Damage
In Minnesota, this sample breakout of Normal Wear and Tear vs. Tenant Damage can help clear up gray areas. This document includes a list of example wear and tear commonly found at rental properties and also a list of considerations for damage by tenants that would require security deposit funds for repairs. Page one of the document covers two lists with examples: pay attention to wording such as “broken or missing” versus “worn or minor”.
Sample Life Expectancy
Also included in the document is a separate page on Sample Life Expectancy with a chart. Major household items and features have predictable lifespans and these can be approached from different perspectives based on the renter and their typical use. Check out the chart on page 2 for details.
We hope this helps you in clarifying what counts as wear or damage, making conversations, calculations and determinations about security deposit funds easier for both renters and owners. Feel free to reach out to any of us with your questions!