Realty World - Sales and Rentals in Charlotte, NC

Charging a Tenant When They Move Out

One area that we constantly get questions about in our rental department is, "what can we charge a tenant for when they move out". This question comes from tenants and landlords, but mostly from landlords after we have performed the move out inspection. The rules are pretty simple when it comes to what the tenant is financially responsible for:

1. Any unpaid rent, late fees, legal fees or other charges on their tenant ledger
2. Any damage to the property that is over and above normal wear and tear.

The question usually arises when the tenant moves out and the cost to get the property is, for example, $2,000. However, when we evaluated the property upon move out, we only charged the tenant, let's say, $300 for damages. The owner usually wants to know why we didn't charge the entire $2,000 in this instance.

As noted in number 2 above, we can only charge the tenant for anything above and beyond normal wear and tear. In this example, the $2,000 may have included painting inside, carpet cleaning or some replacement, lock changes, performing normal maintenance items, replacing light bulbs, cleaning the house before the next tenant moves in, etc. In other words, much of what needs to be done to turn a property to a new tenant is the owner's responsibility, unless the tenant has caused excessive damage to the property. Therefore, I can only charge the tenant for something in excess of what the owner would have to do anyway.  Some examples may be:

** large red stains in the carpet (we can charge to remove the stains, but not the cost of the normal carpet cleaning);

** holes in the wall that need to be patched or excessively dirty walls, walls that have been painted a color that is not neutral, etc. We can't charge them for painting the house, but we can charge the extra amount that a painter would charge to repair the holes, or to Kilz the walls prior to painting;

** excessively dirty house. We would have to have the house cleaned prior to the new tenant moving in, but if the cleaning service charges us extra because the oven was never cleaned during the previous tenancy, or the tenants left food in the refrigerator that spoiled, or we have to exterminate for roaches that showed up during the previous tenan'ts stay, then we can charge for those items.

The bottom line is this: as a landlord, we all need to remember that this is a business, and in any business there are expenses. Getting a property ready for a new tenant is a normal business expense, and it should be something that you and I as property owners are prepared for. Responsibility in items that are damaged will fall to the tenants, and we will do our best to collect the damages from them upon their tenancy termination. However, it is up to you to be able to prepare the property for the next tenants so we can get the property rented quickly and continue the cash flow on your property.

As always, I welcome your comments and questions. Email me at tony@tmbjr.com and I'll be glad to answer!

Posted - 08/29/2010

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