The most common items a landlord can deduct from the security deposit include unpaid rent, the cost to repair or replace damage to the property (not including wear & tear), late fees or NSF fees, and cleanings if the premises is left unreasonably dirty (though there are caveats). In Pennsylvania, you are required to give the vacated tenant a written notice within 30 days of the end of the lease explaining if you are going to return their security deposit or if you are going to deduct items from it. Below is a full breakdown of expectations and procedures when it comes to the security deposit, but also helpful tips and tricks to decrease the chances you run into a problem.
We are not attorneys, and the information provided in this article does not constitute formal legal advice. Lease agreements and municipal codes can vary. Always consult your executed lease agreement, local ordinance documents, or a qualified real estate attorney for legal guidance regarding your specific situation.
Items You Can Deduct From a Security Deposit
Unpaid Rent
If your tenant leaves the premises still owing you rent, you can deduct the unpaid dues from the security deposit and keep them as damages.
Make sure to document every payment you receive and the date you received it. It will make it easier to justify unpaid rent.
Damage to the Property
You can deduct the cost to repair damage to the premises/property from the security deposit. Some examples include:
- Broken Windows
- Holes in Walls
- Kicked in door
- Cracked Mirrors
- Damaged Fans
The day before the tenant moves into the property, complete a photo documentation of everything in the property and its condition. It's not only in your best interest, but your tenant's as well. Then, do another walkthrough within 3 months to gauge how the tenant is treating the premises. From there, you can decide to go in every 3-12 months, depending on the condition of the premises and your context.
Late / NSF (Non-Sufficient Funds) Fees
Any returned payments or previous late fees can be reduced from your security deposit.
Make sure the late fee & NSF fee amount is in your lease. Also, make sure your lease clearly states that rent is not received if your tenant decides to send their payment by mail but only when it is received by you. Of course, make sure everything is documented.
Unreasonably Unclean
You can deduct from the security deposit the cost to reasonably clean the premises. However, there are a couple of tips to keep in mind.
1st: Add a provision to your lease that requires the tenant to leave the premises in the same condition in which it was received. This can make tenant turnovers much easier, and a deduction for cleaning more justified.
2nd: Make sure to have a photo documentation of the premises right before the tenant moves in that can prove it's unreasonably filthy compared to when they moved in.
3rd: Some leases have provisions requiring the tenant to hire a professional cleaning service/carpet cleaner to clean their apartment before they vacate the premises but use caution. Even if the tenant agreed to it, some judges would still over-rule it since a security deposit is used for financial and material damages.
Think through what you are incentivizing. If the tenant has a requirement to hire a cleaner, they may not take care of the premises during the tenancy because 'someone will clean it later'.
Unapproved Alterations
Examples include:
- Painted Walls
- Replaced Appliances
- Replaced Light Fixtures
- Any Replaced Fixtures
#1: Ensure your lease states the tenant must get your approval, in writing, in order to make alterations of the premises.
#2: Document the entire premises with pictures before a tenant moves in. Also, make sure you are doing periodic walkthroughs of the premises documenting the condition with pictures.
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