Going through a property after tenants have moved out can feel overwhelming and daunting. It’s hard to know what can be charged to the tenant versus what ultimately becomes the responsibility of the owner. What is needed in order to properly document the process? How long do you have before sending out the disposition?
Fulfilling a correct security deposit disposition starts at the time of move-in. This is the time to take pictures of the property inside and out. Invite the tenants to also document the property, whether it be through paper or pictures. If through paper, they should turn in the paperwork soon after moving in. When they move out, another full inspection will need to be done on the property. These can be put side by side to show any damage done to the property. When doing move-out inspections and evaluating what needs to be done, you will want proof of that damage from detailed pictures and documentation.
Once you have an inventory of what needs to be taken care of, it's time to assess what can be charged to the security deposit. One of the easiest ways to determine this is to send out a professional and have them give a report on whether the area that needs attention is damaged or natural wear and tear. This is why it is important to have the correct vendors with the licenses and insurance that are required.
Even if it is damaged, you have to look at the life of things. Every item has a life span. For example, carpet is generally expected to last 5 years. After 5 years, the tenant is no longer responsible for damage, and it is now considered wear and tear. This is even if they cause actual damage to the carpet, the life of the carpet shows the natural need for replacement. It is important to keep track of the receipts for any improvements to your house. This way, you can prove the age of any item that may need to be replaced due to damage. Stay consistent, ask the same things from each tenant, and document what is asked. If you require them to get the carpets cleaned when they leave, make sure the house has a carpet cleaning before they move in.
Once you have gathered all the receipts and have the proof that you need, you will need to send the Security Deposit Disposition to the tenants. Before they move out, you will need a forwarding address to send the Disposition to. This document needs to have all the receipts and exactly what was done. You may be asked to provide proof in the future, so be sure to keep the pictures and statements from the vendors. The deposit needs to be sent within 30 days of the move-out date.
The judge will look for organization and understanding of all the rights and responsibilities of both tenants and owners. Proper care needs to be taken when dealing with Security Deposit Dispositions. If the proper steps are taken, frustration from all parties involved can be eliminated. Doing this alone can be daunting, but at Hero Property Management, we have the proper team and focus in order to take these steps. Call now at 801-845-4390
Disclaimer: Always consult with professionals when handling security deposit dispositions