What can I deduct from a security deposit?

Three categories cover the charges landlords rely on most. Unpaid rent is the clearest, including rent owed through the end of the lease term. Damage beyond normal wear and tear is the second, meaning harm the tenant or their guests caused. Unpaid charges named in the lease, such as utilities or agreed cleaning fees, can round out the list where your agreement and state law permit.

Cleaning is a gray area. You can usually charge to return a unit to its move-in condition, but not to upgrade it past that. What cleaning and which fees are allowed varies by state, so read the guides at /laws/ and confirm with your own counsel before you bill anything.

This distinction decides most deposit disputes. Normal wear and tear is the gradual decline that happens when someone lives in a unit responsibly. Damage is harm from accidents, neglect, or abuse. You absorb the first as a cost of ownership, and the tenant covers the second.

• Wear and tear: faded paint, minor scuffs, carpet worn along walkways, small nail holes.
• Damage: large holes in walls, broken fixtures, pet stains soaked through carpet, cracked tile.

Age matters too. A carpet near the end of its useful life has little value left to deduct, even when it is stained. Charge for the remaining value, not a brand new replacement.

An itemized statement is your proof. List each deduction, the reason, and the amount, then attach receipts or written estimates for the work. Photos from a move-in inspection paired with matching move-out photos turn a he-said dispute into a clear record.

• Run a written move-in inspection that the tenant signs.
• Photograph the unit at move-out with dated images.
• Keep invoices and receipts for every repair and cleaning charge.

The fastest way to lose a deposit dispute is charging for ordinary wear and tear. Close behind are vague statements with no line items, missing receipts, and charges that exceed what the repair actually cost. Some states penalize landlords who withhold in bad faith, and the penalties vary, so keep every charge honest and backed by paper.