Tenant Drama, aka My First Mean Landlord Moment

RSRE is a site about first-time real estate. It’s also about creative approaches to real estate, since I believe real estate–if used correctly–can enable you to live an interesting and unusual life. From time to time, I’ll post stories from my personal real estate exploits, since I’m learning how to “do” real estate along with my readers.

Today’s story: The Time I Became a Mean Landlord and Kept Someone’s Security Deposit

I recently withheld someone’s security deposit. I’ve never done that before in the 4 years I’ve been renting out my apartments.

But my latest tenant in my Portland condo gave me no choice. He was a corporate renter–my contract was with his company, who’d placed him in Portland on business for a few months.

Everything was fine until he moved out, leaving the condo a total mess. Dishwasher flung open and full of dirty dishes, food stuck to every surface of the kitchen (it was like a food bomb had exploded), a filthy bathroom, stained sheets, mystery stains on the couch, scratched furniture. It was seriously gross, and it really made me angry. How dare someone mistreat the home I’d so carefully created and offered to him?

Complicating the situation is the fact that the polite tenant had emailed me the day before his departure asking if I had any special requirements when he left. “Oh no,” I said. “Be sure to tidy up, but don’t go crazy cleaning since I have a cleaning service that gets the place ready for the next tenant.”All I meant was he didn’t need to vacuum and wash sheets.

Somehow he interpreted this to mean that the food bomb was a-ok.

The scene of the crime.

All in all, I assessed the damages at $500, including the additional wear and tear he’d levied on my condo’s gorgeous furniture. I had collected a deposit of $1,500 when he rented the apartment, so I had no trouble covering the costs. I returned $1,000 to him.

He was shocked that I’d withheld any portion of his deposit and protested emphatically. What I told him is advice that every renter–whether you’re a corporate renter, vacation renter, or a long-term renter–should heed:

When someone else is holding your money, do everything you can to avoid giving them a reason to keep it. The burden is on the tenant to ensure the landlord can’t find a reason to keep a security deposit. And leaving someone’s home a total mess is not the way to do that; you’re much better off leaving the place exactly as you found it (and for bonus points, take photos when you arrive and depart). My naughty tenant was essentially reduced to begging me to give back more of his deposit. I held firm–what’s done is done–and I’ll bet you he will never trash another apartment again.

While we’re on the topic, on the flip side of the coin here’s my advice to landlords and owners:

Always get a deposit big enough to cover severe damage. Short of your tenant cleaning out your place (in which case your insurance policy should kick in), you need to have enough of their money to pay for any harm they may do. Getting a large deposit is also a good way to ensure your tenants are financially solvent enough to pay the rent.

For more tips for renters on how to ensure you receive your security deposit back, check out these 20 tips on Wise Bread.

What do you think, readers? Did I do the right thing in withholding a portion of the deposit?