Owning a rental property invariably means dealing with the wear and tear that naturally occurs over time. As landlords manage the lifecycle of a property, it's crucial to anticipate common maintenance items, especially during the tenant transition phase. Typically, these items include updating carpets every five years, repainting the interiors, and refreshing mulch in the yard, among other routine tasks. The term "Normal Wear-and-Tear" will often come up in these discussions, so it's beneficial to know exactly what this entails.
Defining "Normal Wear-and-Tear"
"Normal Wear and Tear" refers to the expected deterioration resulting from the intended use of a rental unit. It excludes damage caused by negligence, carelessness, accidents, misuse, or abuse by the TENANTS or their acquaintances. Examples of Normal Wear and Tear include:
Nail holes for hanging pictures.
Minor spot painting between tenants.
Natural fading or thinning of carpets from regular use.
Scuffed hardwood floors.
Occasional cleaning between tenant turnovers.
Rekeying or replacement of aging locks.
Maintenance like blind replacement due to sun damage or caulking.
Any damage or wear exceeding this list may lead to deductions from the tenants' deposit, based on Nestwell's discretion. If maintenance costs exceed the tenant's deposit, property owners will be billed for the necessary work, which will then be collected from the tenant.
Distinguishing Normal Wear from Excessive Damage
Landlord's Responsibility (Normal Wear & Tear):
Limited nail holes, smudges, or dents in the walls.
Naturally faded paint.
Usual wear on carpets.
Sun-faded or slightly torn wallpaper.
Scuffed varnish on hardwood floors.
Natural darkening of hardwood floors over time.
Doors affected by humidity.
Cabinets affected by temperature changes.
Cracked windows due to settling.
Bathroom mold from inadequate ventilation.
Regular maintenance, such as tree trimming. ... and other similar instances.
Tenant's Responsibility (Excessive Damage):
Large holes in walls from neglect or accidents.
Unauthorized or poorly done paint jobs.
Excessive nail holes requiring patching.
Water damage from negligence.
Stains or holes in carpets from spills or accidents.
Unauthorized wall additions or modifications.
Damage from leaving windows open during rain.
Broken fixtures due to misuse. ... among other damages.
Depreciation Guidelines
Recent federal updates have changed the recommended depreciation schedules for certain items. For instance, carpet longevity was previously set at 7 years but now follows a 5-year (60-month) schedule. Vinyl/laminate has been updated to 27.5 years (330 months). As of April 21, 2023, landlords should adhere to these updated timelines, only charging tenants for the remaining life of such materials.
However, it's essential to note that some carpets, especially higher-grade types, might outlast their depreciation schedule. In such cases, with proper evidence of the carpet's initial condition, landlords may charge for more than the depreciated value, focusing primarily on removal and installation costs. Following the given depreciation schedule is always the safest approach.