Key Takeaways
- Document the property’s condition before and after every tenancy so you have a clear basis for distinguishing ordinary wear from tenant-caused damage.
- Consider the age, condition, expected lifespan, and severity of an issue before deciding whether a repair should be treated as a tenant charge.
- Keep detailed photos, inspection records, invoices, and repair documentation to support any security deposit deductions you make.
- Review New Hampshire’s security deposit requirements before making deductions, since reasonable wear and tear cannot be charged to the tenant.
- Use consistent maintenance and inspection practices to identify problems early and protect the long-term condition of your investment.
Every home, whether it’s a rental property or owned by the people who live in it, experiences some level of deterioration over time. This is the result of aging, exposure to the elements, and daily use of the home’s features by the occupants. This process, known as “wear and tear,” is natural and unavoidable.
As a landlord, you should expect that as tenants come and go from your rental property, some wear and tear will occur. You should factor this into your calculations when budgeting for repairs and maintenance of your property. However, it’s also important to understand that not all damage to a rental property is normal.
A rental property can suffer damage when tenants misuse it. This kind of damage is not considered normal “wear and tear” but rather “tenant-caused damage”. Tenants must be held financially liable for the damage they cause.
But how do you, as a landlord, distinguish between natural wear and tear in your rental property and tenant-caused damage? Come find out with Keyrenter New England.
Want to Start Growing Your Portfolio?
Why Does Your Ability to Tell the Difference Matter?
Knowing how to determine if damage is tenant-caused or due to normal wear and tear allows a landlord to:
- Transfer the financial responsibility for tenant-caused damage to the renter.
- Budget for maintenance without bearing the cost of tenant-caused damage.
- Avoid wrongful deductions from tenants’ security deposits for damage they didn’t cause.
- Ensure proper classification of different types of damage in the lease agreement.
- Build trust with tenants through transparent assessments of any damage to the property.
- Comply with state laws on handling of tenants’ security deposits.
What is Normal Wear and Tear?
Normal wear and tear is the gradual deterioration that a rental property experiences through ordinary, reasonable use over time. This kind of damage is expected. Even if the property is well-cared for, normal wear and tear is inevitable. This is because it comes from aging and normal occupancy, not negligence or abuse.
The amount of normal wear and tear in a rental unit partly depends on the property’s age and the length of the tenancy. As a landlord, you cannot legally charge a tenant for normal wear and tear, but you must accept it as part of the cost of owning a rental property.
Common examples of normal wear and tear include:
- Faded or slightly discolored paint.
- Minor scuff marks on walls.
- Small nail holes from ordinary picture hanging, where permitted.
- Worn carpet or flooring from regular foot traffic.
- Slightly loose cabinet handles.
- Faded curtains or blinds.
- Minor scratches on floors from everyday use.
- Gradual wear on appliances from normal operation.
- Worn grout or caulking resulting from age and ordinary use.
To minimize the rate of normal wear and tear, landlords must ensure regular maintenance of their rental property.
What is Tenant-Caused Damage?
Tenant-caused damage results from a renter’s abuse, misuse, or neglect of the rental property. It is preventable damage.
Tenant-caused damage in New Hampshire includes things like:
- Deep gouges in walls and other kinds of extensive damage.
- Smashed doors, broken windows, or windows with missing glass.
- Heavy scratches in the flooring, cracked tiles, or deep cuts in kitchen countertops.
- Broken or missing refrigerator shelves.
- Ripped-off cabinet hinges or missing light fixtures.
- Burn marks, pet urine stains, or large chemical bleach spots on carpets.
- Water damage from a leaking pipe that a tenant noticed but failed to report.
- Appliance damage due to neglect.
Normal Wear and Tear Versus Tenant-Caused Damage
To distinguish between these two types of damage in your rental property, there are a few questions you should ask.
Check them out below:
- What was the condition of the property at the time the tenant moved in? Was it in pristine condition or somewhat aged?
- What is the age of the damaged item or feature? Is it close to or past its expected lifespan as estimated by the manufacturer?
- What was the duration of the tenancy? More wear and tear is expected with a five-year tenancy versus a six-month lease.
- What is the severity of the damage? Is it the kind that is unavoidable with normal usage or is it unusual?
- Did the damage happen gradually or suddenly?
One way to avoid property damage is to find great tenants for your rental property.
Find Out How Much Your Rental Property is Worth!
Tenant-Caused Damage and a Tenant’s Security Deposit
The law allows landlords to use all or part of a tenant’s security deposit to fix any damage caused by that tenant. Along with things like unpaid rent and excessive cleaning costs, this is one of the reasons why landlords require tenants to pay a security deposit.
But there are rules on how you can deduct from the deposit for repairs in New England.
- The landlord must provide proof of tenant-caused damage by comparing the details from the move-in and move-out inspections.
- The landlord must list every damage to the rental property, the type of repair required, and the exact cost of the repair.
- The remaining deposit after deduction must be sent back to the tenant within the legal deadline along with the above details.
Protecting Your Rental Property from Tenant-Caused Damage
The following measures help to minimize the risk of tenant-caused damage.
They also ensure that you can get tenants to pay for whatever damage they cause to your property.
- An all-inclusive lease agreement: The lease must explain how tenants should maintain the rental, as well as the difference between damage caused by a tenant and normal wear. It should explain the consequences for damaging the property.
- Require a security deposit: Every tenant must make a security deposit. The security deposit amount and the details of how the deposit will be held, used (if there is damage to the property), or refunded to the tenant must be included in the lease.
- Move-in and move-out inspections: On a tenant’s first and last day in the property, the landlord and tenant must conduct inspections to assess and record the condition of the property. This will help the owner determine if the property has been damaged.
- Maintain detailed records: Landlords must keep copies of every communication with tenants, as well as receipts, invoices, and reports. These help to prevent disputes and serve as evidence if there is a lawsuit over deductions from the security deposit.
- Understand local laws: To ensure a proper response to tenant-caused damage, it is vital to understand what the law says about the problem. A landlord’s actions regarding this issue must always be within the limits of the law; they cannot resort to self-help.
Bottom Line
When dealing with normal wear and tear versus tenant-caused damage in your rental property, keep in mind that state laws on this matter can vary significantly. This is why you need expert guidance when trying to navigate these situations in your rental property.
Working with an experienced property manager from Keyrenter New England ensures you don’t make costly mistakes in your handling of tenants’ security deposits when fixing tenant-caused damage in your rental property.
Get in Touch with Our Experts!
Frequently Asked Questions About “Normal Wear and Tear”
Can a Landlord Charge a Tenant for Normal Wear and Tear in New Hampshire?
Generally, no. New Hampshire law distinguishes reasonable wear and tear from damage for which a landlord may make a security deposit deduction. If a condition results from ordinary use and aging rather than tenant-caused damage, the landlord generally cannot charge the tenant for the repair through the security deposit.
How Should Landlords Document Wear and Tear Before a Tenant Moves in?
Start with a detailed condition report supported by dated photographs or video, paying particular attention to flooring, walls, appliances, fixtures, countertops, doors, and other areas likely to show changes over time. Record existing imperfections rather than simply describing the property as being in “good condition.”
At move-out, compare the documented condition against the original record and note any changes. Consistent documentation gives property owners a stronger factual basis for determining whether a condition developed through ordinary use or requires further investigation.
How Does the Age of a Property Affect Wear and Tear?
Age can provide important context when evaluating a repair, but it does not automatically determine whether something qualifies as normal wear and tear. Older properties and fixtures may naturally show more signs of use than recently renovated ones.
Landlords should consider the age and condition of the specific item, how long it was in service, the length of the tenancy, and the severity and cause of the damage.
What Documentation Should a Landlord Keep When Charging for Tenant-Caused Damage?
Keep the move-in and move-out inspection records, dated photographs, written communications, repair invoices or estimates, and notes explaining the condition that required attention.
How Long Does a New Hampshire Landlord Have to Return a Security Deposit?
New Hampshire generally requires a landlord to return the security deposit, along with applicable interest, within 30 days after the tenancy ends.
