Normal wear and tear in rental properties: A guide for landlords

Like any space that’s lived in, your rental property will go through cycles of wear and tear. Having guidelines and expectations for your tenants can go a long way in reducing unnecessary damage. So, what’s the difference between normal and excessive wear and tear?

In this guide, we’ll walk you through the differences between the two. You’ll also get insights on the importance of security deposits and how tenant screening offers a reliable way to find respectful, credible renters, which should minimize wear and tear.

What is considered normal wear and tear?

When a tenant moves out of your rental property, there’s a good chance it won’t look the same as it did when they first arrived. When this occurs, you must assess the wear and tear level.

That’s why developing a normal wear and tear definition is essential. It refers to what you expect the deterioration to be due to the tenant’s everyday use.

Common examples of normal wear and tear

So, what things can you categorize as normal? Some examples include loose doorknobs, worn-out carpet, and minor scratches on the walls and floors. Because this type of wear is unavoidable, tenants aren’t responsible for this damage.

Each state classifies specific damages allowed to be considered normal wear and tear in a rental property. The Department of Housing and Urban Development (HUD) also provides a list of examples that include:

• Fading, peeling, or cracked paint
• Small chips in plaster
• Nail or pin holes
• Worn or faded carpet
• Worn or scratched enamel in bathtubs, sinks, or toilets
• Dirty or faded lamps or window shades
• Grimy or loose grouting
• Slight scuff marks

What is tenant property damage?

Standard wear and tear on rental properties is usually minor and cosmetic. You’ll be sprucing up units before putting them back on the market, so you’ll expect to do some painting, repairing, and grouting.

The bigger concern is tenant property damage. This can be costly and is often the result of neglect or abuse, both accidental and intentional.

Depending on the severity of the damage, tenants may forfeit their security deposit, receive a notice to vacate, or face eviction.

Unlike normal wear and tear, this type of destruction isn’t as fixable. It could be severe enough to render the property uninhabitable and take weeks or months to be available again. In that case, you’re losing revenue.

Examples of tenant property damage

So, what constitutes property damage? HUD also has examples for this category, including:

• Gaping holes in walls or plaster
• Seriously damaged or ruined wallpaper
• Doors ripped off hinges
• Broken windows
• Holes, stains, or burns in the carpet
• Missing fixtures
• Dozens of nail holes
• Chipped and broken enamel in bathtubs and sinks
• Broken or cracked mirrors

Wear and tear vs. damage

We’ve defined the difference between normal wear and tear and damage with a broad brush. The lists above don’t cover every area of a property. You can use HUD guidelines, along with other reputable resources, to define expectations. They can be part of your contract with the tenant.

Ultimately, you can say that normal wear is cosmetic, relatively easy to fix, and is what would typically occur with people living in the space. Damage goes way beyond those boundaries. It’s excessive, often caused by negligence, and comes with a costly price tag.

In reviewing normal wear and tear vs. damage, it’s a good idea to look at specific areas of a property.

Typical wear on floors, walls, and appliances

Here are some specifics for floors, walls, and appliances in defining normal wear and tear versus property damage.

Flooring

Each type of flooring will have its own unique wear, such as:

• Tile: Dirty or loose grout would be normal; broken tiles would be excessive.
• Carpet: Worn-out high-traffic areas of subtle fading would be standard; large stains or tears would be damage.
• Linoleum: Peeling at the corners would be typical wear, but cuts in it would likely qualify as damage.

Walls

Painted walls will always show wear after a few years, depending on the color and quality. Repainting should occur every three to five years. You can expect fading from sunlight exposure, scuffs, and peeling as standard wear and tear.

Walls with cracks, holes, or large marks would be outside of normal wear and fall under damage.

Appliances

The lifespan of an appliance varies on the kind, quality, and regular maintenance and cleaning. Tenants should start off with appliances in good condition. As they end their useful life, you can expect they’ll stop working as part of regular use.

When something happens more suddenly, it could indicate it’s not appliance normal wear and tear.

What would be more than this would be signs that someone tampered with or attempted to damage it blatantly. Also, if tenants are responsible for cleaning and maintaining them, their failure to do so could cut the lifespan short.

Documenting property condition

Documenting your property’s condition is critical. It provides a record of the property’s improvements, repairs, and needs throughout the years. It’s also crucial for determining normal wear versus damage that could cost tenants.

Completing thorough inspections is key to documenting property conditions.

Importance of move-in and move-out inspections

Before tenants move in, conduct a walkthrough inspection. Take the time to photograph and document the condition of your unit, including damaged and undamaged areas. This will ensure you have proper evidence if you need to deduct from their security deposit for repairs after your tenant moves out. Make note of any issues in the tenant’s lease agreement so they know of existing damages.

Move-out inspections are your opportunity to assess the property's condition to determine if there’s any damage.

After you inspect and document any damage caused by the tenant, you’ll want to create a detailed list of the issues and associated costs. Send this list to the tenant as soon as possible so they know what you intend to deduct from their security deposit.

Handling security deposits fairly

In addition to collecting rent, it’s a good idea to ask for a security deposit. Requiring it gives you some insurance for potential damage costs. However, you should handle deposits fairly and compliantly.

State laws dictate how much you can charge for a security deposit, what you can use it for, and how long you have to return the deposit if there isn’t property damage.

In California, for example, landlords have 21 days to return all of a tenant’s security deposit if there are no deductions. California landlords can only use funds from a security deposit to clean the rental property, repair damage outside of normal wear and tear, and restore or replace furniture included in the rental.

Guidelines for deductions and refunds

Again, state laws differ, so you should check the laws relevant to your property.

Generally speaking, if there is no damage to fix, you’re legally obligated to return the entire security deposit within a reasonable time frame. Most consider this within two months of the lease ending.

Here are some FAQs about deductions.

Can a landlord charge for normal wear and tear damage?

State laws restrict landlords from deducting for normal wear and tear, but they can use funds for cleaning fees. In California, landlords may only deduct for repairing damage other than standard wear and tear on rental properties.

How much can landlords charge a tenant for damages?

Most states don’t have a specific limit for how much landlords can charge for damages; only the amount must be reasonable and itemized in a receipt.

How much can a landlord deduct from a security deposit?

While the deduction amount may vary state by state, landlords can deduct from the deposit for any property damages and cleaning fees required after a renter moves out. If a landlord withholds the entire security deposit, they must provide the tenant with a detailed charge list that includes the price of all repairs and replacement costs.

Are nail holes considered normal wear and tear or damage?

According to the HUD, nail holes in the walls are considered normal wear and tear. However, it’s reasonable to classify large screw holes or multiple nail holes that cause damage to the paint or drywall as property damage.

Maintaining property value with preventive measures

There are two avenues for preventive measures to safeguard your property’s value. First is regular maintenance, such as routinely updating appliances, ensuring your building is up to code, and keeping all utilities in working order.

Set up a maintenance request workflow for your tenants and respond to all inquiries in a timely manner. Checking up on and fixing minor issues in your rental property can help you minimize any clean-up or repairs required after your tenant moves out. It also allows you to check in on the property while it’s occupied and address any issues before they spiral out of control.

The second proactive measure is to screen tenants, looking at their rental, financial, and criminal past. Red flags caught by screening could keep someone out who may not treat your property responsibly.

How tenant screening can help

A comprehensive tenant screening solution can help you identify tenants who meet your financial expectations and demonstrate that they are responsible and respectful.

Thoroughly screening prospective tenants will give you a better understanding of their background and identify potential red flags before you agree to hand over the keys to your property. A typical screening report will include an applicant’s full credit report and score, background check, and rental history report, giving you a holistic view of your tenant.

During the tenant screening process, you’ll gain access to an applicant’s financial, rental, and criminal history. In addition, you’ll also see if there are any behavioral concerns to watch out for in a prospective tenant. An eviction-related proceedings report, for example, could reveal any tenant judgments for possession and money and unlawful detainers. Tenant screening can help you back up any gut feelings and even unearth issues that may signal you should pass.

As a landlord, you know normal wear and tear on rental properties is typical. More significant damage can be costly in many ways. With a deeper understanding of normal wear versus tenant damage, you can be confident in renting out your next vacant unit.

Don’t let renters take you by surprise. Make sure you know exactly who you’re renting to before you sign on the dotted line when you use RentSpree’s Tenant Screening to find your next renter today.

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