Wear & Tear Vs. Tenant Damage: A Complete Guide for Landlords!
Apr 10, 2024
60 Mins
Paul Flogstad
When a tenant vacates a rental property, it's common to find some degree of wear and tear. While landlords can deduct the cost of repairs for damages beyond normal wear and tear from the security deposit, they cannot withhold funds for typical deterioration of the property due to time and use. Defining normal wear and tear can be challenging, as it encompasses the natural decline in a property's condition over time. This deterioration is inevitable, even with careful tenants, and should not be deducted from the security deposit.
To prepare for these costs, landlords should budget for minor repairs, maintenance, and cleaning between tenants. Unlike normal wear and tear, tenant damage results from neglect, abuse, misuse, accidents, or unauthorized alterations. Landlords can hold tenants responsible for such damages, including those caused by guests. It's crucial for landlords to understand the difference between normal wear and tear and tenant damage to handle security deposits and property maintenance correctly.
Discovering new damage in your rental property can be unsettling. This session aims to provide clarity on differentiating between normal wear and tear and tenant damage. If you're struggling to classify a broken or worn item, consider whether it could result from continuous use or if it was due to neglect, abuse, or misuse. Additionally, accidents can occur, so it's important to recognize that tenant damage is not always intentional.
Paul has been involved in the real estate industry for the past 38 years. He has been involved in sales, construction, project management, appraisal, mortgage consulting and brokerage, property management and property management consulting/training.
Through his consulting company, Property Management Solutions, he provides training and consulting services nationwide to owners, management companies, multi-housing associations, as well as state and federal agencies.
He specializes in fair housing issues and has developed fair housing and outreach programs for governmental agencies as well as conducting seminars which are presented to property management companies, apartment associations and the general public. He also conducts research analysis for impediments to fair housing for grantees of federal CDBG funds.
Most recently, he has been a consultant to the City of Sioux Falls and the State of South Dakota. In this assignment he has developed a fair housing awareness program that is one of the first of its kind in the nation. It involves a three pronged approach to fair housing awareness. This approach makes use of an ombudsman concept and has proven to be very effective in dealing with discrimination and landlord/tenant issues.
For over twenty years was involved in appraisal of residential, multi-family, farm and commercial properties throughout the Midwest. Most recently, he was a consultant for affordable, multi-housing properties in 22 different states. This involved properties in HUD, Rural Development, HOME and Tax Credit programs.
Paul was previously Vice President of the South Dakota Multi-Housing Association, Vice Chairman of the Minnehaha County Housing and Redevelopment Commission, and Chairman of the Sioux Falls Property Appeals Board. In 2009, he received the Outstanding Educator of the Year award from the South Dakota Multi-Housing
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