Registered: 1223064118 Posts: 1
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We have tenants moving out next week and the place is a DUMP. Absolutely filthy. They say that they will have the place professionally cleaned and the carpets cleaned before they move out, but there is no way that carpet will come clean. At the very least part of it will need to be replaced. How do I determine how much they pay towards this cost? I know that I can't expect them to pay for all of it as it wasn't brand new when they moved in, but I do think that they should be responsible for the damage that they did cause. Any advice?
Registered: 1169270040 Posts: 3,814
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Carpets need to be depreciated when calculating a tenant's responsibility for damage. To do this, look at your tax return. Find the schedule for depreciating the rental property. You will see the rental address and things you have added to the unit. Look for the carpet. You will find a date it was added and a column listing "Life". The life column is how long it is depreciated for (how long it is supposed to last). The life column should be a number between 5 and 10. Add that number of years or months to the date aquired. If the new date has already passed, the carpet is considered worthless and you can't charge the tenants anything. If it hasn't, figure out how long it is until that date from when the tenant moved out. Take that period and divide it by the Life number, The resulting decimal will be how much of the replacement they are responsible for.
Example: Date Aquired 8/05 Life = 7 yrs New date (Aquired + Life) = 8/2012 Since this date has not passed, the tenants pay for some of the replacement. Let's calculate that: Tenants moved out 8/08 Time from vacate date to new date = 5 yrs. 5yr/7 yrs = .714 Tenant is responsible for 71.4% of the replacement. Another example: Life and vacate date is the same. Date aquired is 8/2002 New date is 8/2009, this is one year from vacate. Tenant is responsible for 1/7 of cost, or 14.2 % They may have only been there a year or two, but this takes the age of the carpet into account.