As a landlord, preparing for a tenant moving out can keep you rather busy. While inspecting your unit, you may notice several drill holes in the walls.Maybe the occupant hung shelves or mounted a television. Does this mean you can keep their security deposit?
Distinguishing normal wear from tenant damage
California law allows landlords to deduct from a security deposit for damage beyond ordinary wear and tear. However, the law also protects tenants from deductions for normal deterioration that occurs during everyday living.
Normal wear generally includes faded paint from sunlight, minor scuff marks and a few small nail holes from hanging pictures. Damage refers to harm beyond that standard, such as large punctures from TV mounts, wall anchors left in the drywall or broken fixtures.
When the damage is significant, you can deduct the reasonable cost of cleaning or repairing that specific area, but you cannot keep the entire deposit as a penalty.
Evaluating drill holes in your unit
Not every hole qualifies as a damage subject to a charge. When assessing these marks, evaluate:
- Quantity: A few small nail holes are generally acceptable. Excessive holes, such as those from a gallery wall, can push the condition beyond normal wear and tear.
- Purpose: Did the tenant violate the terms of their lease? If your rental agreement explicitly prohibits alterations or wall mounting, markings made for these unapproved modifications might justify a deduction for the cost of restoration.
Evaluating each situation individually can help you make fair decisions. When in doubt, consider whether a neutral party would view the holes as a natural result of someone living in the space or as imperfections that need professional repair.
Providing proof and documentation is key
If you plan to use a tenant’s security deposit for repair, California law requires you to provide a detailed itemized statement within 21 days after they vacate. This statement must explain each charge and include supporting documentation, such as invoices and photographs of the affected areas.
For deductions exceeding $125, you must attach copies of invoices or receipts. If you or an employee performed the repairs, include a description of the work completed, the time spent and the reasonable hourly rate charged.
Failure to follow the proper procedures means you may lose the right to keep any portion of the funds. Courts can award tenants up to twice the deposit amount in addition to a full refund if they find bad faith on the landlord’s part.