Protecting yourself and your rights

Whether you are currently renting or you have rented in the past, when moving out we all eagerly anticipate the return of our security deposit from our landlord. Then, when it arrives been disappointed to see deductions. But what do these deductions actually mean? Were they legally deducted?

Rental Cleaning & Damages

When inspecting a vacated rental, landlords look at different categories of possible deductions. Each category has its own specific time to be considered and looked at by the landlord.

For instance, cleaning is the first walk-through a landlord will complete. The reason is you, as the renter, legally have 24 hours to correct any deficient cleaning before your deposit is charged. This is why it's important to schedule a cleaning walk-though with your landlord at least 24 hours before your tenancy terminates to prevent being charged for additional days of rent.

They will then look at any damages that have happened to the unit during the rental term. The damage walk-through is conducted after the tenancy has ended because damages are not something the tenant has the option to correct or repair (in the lease, tenants are usually asked not to repair damages). If repairs are needed, this should be done by experts in the field of the repair. Repairing damages yourself usually results in creating more damage and a larger bill for an expert to go in and correct the repair and fix the damage correctly.

During the damage inspection, the landlord will determine whether the damaged items seen are normal wear and tear or if they are actual damages. While being similar, these two categories have an immense difference when it comes to the return of your deposit.

Some items require a landlord's judgment to determine whether it's normal wear and tear or if it is actual damage, although a lot of experienced landlords can easily tell the difference. Your landlord should document the issues with photographs. They will then replace or repair the items, or get an estimate if the repair is not going to be completed right away. It's important to note that not all damages require immediate repair. Just because the landlord held money out of your security does not mean they have to immediately make the repair.

Damage versus Wear-and-Tear

Damage by definition is harm caused to something in such a way as to impair its value, usefulness or normal function. This category contains, but is not limited to, a damaged drawer or cabinet, broken windows, gouges or holes in walls or floors, ripped carpet, stains on walls or floors, any damage due to neglect, holes in the wall larger than nail holes. Normal wear-and-tear refers to things that commonly occur and often wear out. Examples are wear patterns in carpet, a leaky faucet due to a worn-out valve, nail holes in the walls from hanging pictures, small scratches or scuffs in floors or walls, fading or chipped paint from normal use and not abuse.

Depreciation

This brings us to depreciation. Depreciation is the reduction in value of an item based on time or wear-and-tear. Items gradually lose value and a tenant can only be charged for the value left. This is common with appliances, cabinetry, paint, carpet or any type of flooring. Once the useful life is diminished, your landlord can no longer charge you for the replacement. If when moving out the carpet needs replaced due to a damage that occurred, the landlord must take the life of the carpet minus how long it has been installed and then can only charge the tenant for the life that is left in the carpet.

If the landlord provides something for the tenant to use, they must pay for it to be fixed if it breaks. For example, if the landlord provides a washer and dryer and one of them stops working, as long as it is not tenant-caused by improper use or abuse, the landlord must pay to repair or replace the appliance. If the landlord supplies a lawn mower for the tenant to use on their lawn, the landlord is responsible for maintenance, repairs or replacements unless otherwise stated in the lease.

Statement of Condition

Move-out is when the Condition Statement you signed at move-in becomes crucial. A landlord, private or licensed, cannot legally collect a security deposit from a tenant without also providing a condition report to the tenant on move-in showing the current condition of the property. This prevents tenants from being charged at the end of the tenancy for items that were damaged when they moved in. Although it is not legally allowed, if a landlord does collect a deposit without a condition report, that tenant cannot have cleaning withheld from their deposit at the end of the tenancy. This is due to no record of the cleanliness of the premises at move in. Now, with that being said, if a landlord gives a new renter a condition report to fill out and they do not object to, or question the report provided, then the condition of the premises is considered uncontested and agreed upon by all parties.

Returned Deposit

When receiving your deposit back, the landlord is required to provide you with a statement of deductions. Do not be afraid to ask what each charge is and how they came up with the amount. Until you ask, the landlord does not legally have to provide receipts or explanations for the charges. If you have withholding for rent, utilities, cleaning or damages, the landlord has 30 days to send you the balance of your security deposit and statement of deductions. If nothing is withheld from your security deposit, your landlord only has 10 days. If they fail to meet these deadlines, Montana law allows the tenant to sue for three times the damages.

The Take Away

It is important to know your rights as a tenant, whether you have a professional company managing your rental or a private owner. When it comes down to it, there are crucial steps to know and take to protect yourself and your rights. Knowing your rights is the first step to protecting them.