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SanDiegoLL

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Posts: 3
Reply with quote  #1 
Hello,  I am currently in process of returning the security deposit after tenants recently vacated. Upon inspection of my rental unit, I noticed the tenants tried to fix/replace a couple areas of carpet. The carpet was brand new in 2009 and unit was owner occupied by me until 2014. These tenants occupied the unit for all of 2015 up until November 15th (11 months).  I am aware of only being able to charge the tenants for damages to carpet besides normal wear and tear, and for the remaining life of the carpet. This carpet has a lifetime stain resistance warranty and a 20 year abrasion wear/fade resistance warranty.

The carpet is no longer one piece. They cut out and tried to repair a section in master bedroom doorway approximately 34 inches x 6 inches (picture attached hopefully). And another section in master bedroom near tile 12 inches x 5 inches. They also took out the carpet from the closet in 2nd bedroom in order to accomplish this task 5 feet x 2 feet and replaced with crappy used brown non matching carpet.

My question is, how much should I deduct from the security deposit to help with my replacement costs?

(Carpet pictures)
https://www.amazon.com/clouddrive/share/GbSWtFOcue4niyEblauvnIelavhQHLkuqemSp3cgcIV?v=grid&ref_=cd_ph_share_link_copy

https://www.amazon.com/clouddrive/share/TS4w2kF3ugn28qVWkNSM6pJ6v6cWTqro8Bqus1NTefq?v=grid&ref_=cd_ph_share_link_copy
RedFord150

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Posts: 126
Reply with quote  #2 
I am in CA and I am told that carpet must be depreciated over 5 years. Your carpet is over 6 years old. I do not know that the warranty alters the time period.

If you want to play "Hardball", re-carpet the rooms affected and deduct the entire cost. Send them an accounting of their deposit with a copy of the invoice. Make sure you send the remaining refund and the accounting within the time period required in your state. Make sure you send certified.

The tenant can pursue you if they want to dispute. Let them tell you what they think they are due. If it is reasonable, give it to them. If not, tell them you are justified in your belief and you are willing to face them in court. You have pics and the replacement invoice. The damage was both intentional and malicious. Do the tenants really want to face a Judge and explain that they did not just stain your carpet, they cut it up and removed it? This is a whole lot more than kids spilling Grape Juice.

If the tenant actually sues you in Small Claims Court, you can always settle with them. I doubt they believe they get to remove carpet for free. I also doubt they know exactly how old the carpet is and what the law requires for depreciation. If you have not already told them, I would not offer up the purchase date. I would simply say they rented a unit with high quality carpeting in excellent condition and they ruined it in less than a year.

Good luck.



SanDiegoLL

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Posts: 3
Reply with quote  #3 
Hi RedFord!  I have been looking all over the internet for an answer about carpet life span. I see a lot of people talk about 5, 7, or 10 years but I have yet to come across a legal answer. Where did you find your 5 year information? Can you provide me a link? Thanks!
SanDiegoLL

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Posts: 3
Reply with quote  #4 
Any landlords out there?

Do you think keeping the pet deposit of $200.00 and refunding their security deposit (minus rent owed) is too much or too little?

The cost to remove, replace and install similar carpet for 11x14 room and 5x2 closet would run from $300-600.
ahkenaten

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Posts: 156
Reply with quote  #5 
I usually negotiate with the tenant and come up with a fair price and have them sign a security deposit form I made up. Nice and simple.
RedFord150

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Posts: 126
Reply with quote  #6 
I used a professional property manager for the first year. She used the 5 year rule for carpets in her business. I do not have any links or laws, just common practice.

$300 to $600 is a pretty big span. If you can get 2/3 of your $ back from the tenant, that is probably good enough.

Good luck.
OHlandlord

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Posts: 3,737
Reply with quote  #7 
The 5 or 7 year guideline is from the IRS depreciation tables.  The IRS allows you to depreciate the carpet in a rental for 5 or 7 years.  Most landlords use 5 years on the taxes to maximize their deductions.  This is where the "rule" comes from.  Look at your tax return.  How many years are you using on the itemization schedule?  Use the same number of years to calculate the deduction for the remaining life of the carpet.  If you used 5 years, you shouldn't deduct anything for 6 year old carpet.  In the eyes of the IRS, it is already fully depreciated and now worthless.  Warranties have nothing to do with it.
vaynganhang19

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Posts: 1
Reply with quote  #8 
Any landlords out there? She used the 3 year rule for carpets in her business. I used a professional property manager for the first year.  I do not have any links or laws, just common practice. How and Why?

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