A Property Manager must determine what constitutes “normal wear and tear” when it comes to rental units. This question is frequently asked by tenants as well as owners. Generally, this question cannot be answered easily. The vagueness surrounding this topic makes returning a security deposit to a tenant challenging for most Property Managers.
In order to determine what constitutes “Normal Wear and Tear” in Colorado, we must first define it.
The Colorado Revised Statutes regulate security deposits in section 38-12-101, et seq. Deposits in advance prior to signing a lease are called security deposits or damage deposits. These reasons may justify the landlord’s retention of the deposit:
- Whether the tenant has unpaid rent or utility bills;
- Indemnity payments for damage beyond “normal wear and tear”;
- The tenant must agree to any cleaning;
- A landlord may lose money due to any breach of the lease.
A Colorado statute defines normal wear and tear as the degradation that occurs as a result of the rental unit being used for the intended purpose, without negligence, carelessness, accident, or abuse by the tenant, members of his household, or invitees or guests of the property or equipment”. Wear and tear can be seen in a worn track on the carpet. Nail holes in walls, stains on carpets, and mold on grout are examples of things that are not considered “normal wear and tear”.
What are the challenges a landlord faces when dealing with “normal wear and tear”? As we have outlined in this article, landlords can take a few steps to reduce the chances of being confronted by tenants regarding ‘normal wear and tear’.
- It is very important that you prepare your property for rental prior to renting it out. Make a written, photographic, and video record of the initial conditions of the rental unit after the tenant has inspected it.
- Be honest and realistic when describing your property. What is the condition and age of the floors? Are you satisfied with the quality? Items such as stained carpets or worn-out furniture should be accepted when tenants move out. Every five years, carpet should be replaced because it typically wears out faster than hardwood floors.
- Especially when paint is almost past its life, scuff marks are normal wear and tear. In this case, if you went to court because we charged the residents for stains on a 4.5 year old carpet, the judge would still favor the residents as the carpet has reached the end of its life (carpet has a life expectancy of 4-5 years). The Colorado courts have consistently sided with residents in these types of cases. The resident could be charged for 4/5ths of the amount to replace a paint that is one year old and has the same markings because it still has 4 years of life left.
- If the tenant has lived in the apartment for a long time before moving out, consider how long he or she has lived there. There will be a difference in wear and tear based on whether the tenant signed a 6-year lease or a 1-year lease. Long-term tenants are likely to face higher maintenance and repair costs. Long-term tenants will also experience different types of wear and tear than tenants who occupy a space for a short time.
- Determine what problems are really “damages”. Dirt and filth do not constitute wear and tear. Normal wear and tear is characterized by heavy soil and stains. A leaky sink that caused mold does not fall under “normal wear and tear.”. Using utilities improperly does not qualify.
If a tenant has lived in the property for some time, going to court over carpet cleaning is usually not worth it.
When landlords look for repeated wear and tear across different tenants over time, they can distinguish “normal wear and tear” from tenant-liable damage. There is a likelihood that this damage is “normal,” and as such the tenant is not responsible for it. Sporadically occurring damage is more likely to be the tenant’s responsibility. Before going to court, a landlord should always contact a tenant’s landlord when he discovers significant or suspicious damage.
Your lease should be transparent and clear, and your tenant should know what is considered normal wear and tear. If you’re a tenant, you should know how to get your security deposit back