When tenants sign a lease agreement to occupy a rental property, they typically must pay a security deposit to the landlord. Although this security deposit is usually returned to the tenant after the lease has ended, there are reasons a landlord should not refund it. Here are five reasons to not refund a security deposit explained by our Las Vegas property management experts.
1. Property Damage
If there is any damage done to the rental property that falls outside of reasonable wear and tear, the landlord will need to make extensive repairs before the rental property can be leased again. That means additional costs and time spent to get these issues corrected. In these situations, the landlord can use the security deposit to cover these costs and make up for lost rental income.
What Is Acceptable Wear and Tear?
But what is considered normal “wear and tear”? Here are some examples of what landlords can expect after a tenant vacates the rental property:
- Some holes in the walls from hanging art or pictures.
- Some mildew in the grout lines between shower tiles.
- Tarnish on bathroom and kitchen fixtures.
- Light stains on the carpet.
- Light scratches to hardwood or laminate floors.
- Loose doors, handles or knobs in the kitchen or bathroom.
- Reasonable amounts of dirt and dust throughout the property.
What Is Considered Damage to the Property?
Damage is very different from wear and tear. It involves extensive changes or degradation of the rental unit. Examples of property damage that would qualify as reasons for a landlord to keep a tenant’s security deposit include:
- Broken vanity in the bathroom.
- Broken windows or doors.
- Large holes or cracks in the walls.
- Stained or torn carpeting.
- Hardwood floors have extensive water damage.
- Kitchen or bathroom countertops that are cracked or broken.
- Unreturned keys after the tenant leaves.
- Missing or damaged smoke detectors.
- Missing or damaged blinds.
2. Failure to Pay Rent
When a tenant does not pay their rent before leaving a rental property, most lease agreements state that a landlord can keep all or a portion of the security deposit to cover that lost rent. Unpaid rent is considered to be a breach of contract because the tenant did not uphold their end of the lease agreement. In order to make up for the unpaid rent, the landlord can deduct that amount from the tenant’s security deposit.
3. Breaking a Lease Early
A landlord can typically keep part or all of a security deposit when a tenant breaks a lease early if the lease agreement includes some type of early termination clause. If the tenant agreed to the clause and signed the lease, it is acceptable for the landlord to choose not to refund the security deposit. However, it depends on the wording in the lease agreement and what the tenant-landlord laws are in your state.
4. Unpaid Utilities
When the tenant fails to pay utility bills or, in some cases, HOA fees or other types of fees, a landlord may be able to keep the security deposit. Again, it all depends on the lease agreement. If the lease documents clearly state that the tenant is responsible for paying utilities and other required fees, a landlord can choose not to refund the portion of the security deposit to cover those costs.
5. Cleaning Costs
Another reason a landlord can keep a tenant’s security deposit is to cover excessive cleaning costs. When a tenant leaves the rental property full of trash or the carpet is soaked with pet waste, a landlord is within their rights to use the security deposit to cover the cost of cleaning. Other examples of cleaning costs that would result in a landlord deducting from a security deposit are:
- Excessively dirty showers, bathtubs, and sinks.
- Flea, roach, and other pest extermination.
- Filthy stovetop and oven.
- Water damage stains.
- Mirrors and windows caked with dirt.
30 Days to Return Partial Security Deposit
In some cases, the landlord will not need the entire security deposit to cover many of these costs. They may only need half or a portion of the full amount. When this happens, the landlord must return the remaining balance of the security deposit to the tenant within the allowed period of time as defined by state law.
In Nevada, landlords must return a security deposit to their tenants within 30 days of lease termination. When the landlord makes deductions to the security deposit to cover the costs of cleaning, unpaid rent, unpaid utilities, or repair damage, an itemized list of those deductions must be provided to the tenant along with the security deposit balance.
How Does a Landlord Return the Security Deposit Balance?
There are two ways Nevada landlords can return the security deposit to the tenant. Firstly, the money can be delivered by hand to the tenant. This is usually done wherever the tenant would pay rent, such as the landlord’s office. Secondly, the landlord can choose to mail the balance of the security deposit to a forwarding address the tenant has provided.
What If a Tenant Disagrees with the Landlord Keeping Part of the Security Deposit?
If a tenant disagrees with the security deposit deductions made by the landlord, the tenant can choose to dispute the charges in a written statement. Oftentimes, this dispute is handled out of court between the two parties. However, the tenant may try to take the matter to small claims court. This is why it is important to make sure you have a good lease agreement that is clear on why a landlord may need to keep a tenant’s security deposit.
How Professional Property Managers Can Help with Security Deposits
Our experienced property managers understand that it can be challenging to find yourself in a position that requires you to keep a tenant’s security deposit. Tenants may feel angry or frustrated and try to pressure or harass you to return the money. However, it is important to remember that you have rights as a landlord and should not have to pay for your tenant’s carelessness or negligence.
The Black & Cherry property management team can help with all aspects of managing your rental property, including tenant communication, collecting security deposits, and rent and lease agreements. We can ensure your lease agreements include all the right verbiage to protect you if your tenant fails to pay their rent, utilities, or other fees. To learn more about our property management services for landlords in Henderson and Las Vegas, contact our team today!
