When it comes time for a property to be returned to a rentable condition after a tenant leaves there are several points you should be aware of. In a previous blog post, Park City Property Management - 3 Key Time Periods For Lease End, I covered some of the main points. In this post I would like to deal specifically with the idea of damage versus wear and tear, particularly when it applies to determining the amount of deposit to refund to a tenant.
Definitions
Let me preface these definitions by first saying that I am not an attorney and this should not
be construed as legal advice. The purpose of this blog is to point you in the right direction if you have questions and provide some basic information. If you need further information I suggest you contact an attorney who specializes in Utah property management. Perhaps the most concise definition of "wear and tear" is unavoidable deterioration resulting from normal use. The idea of normal use is somewhat expounded upon in the Utah Fit Premises Act with ideas like reasonable and "in the manner for which it was designed" highlighting the correct care of a property and terms like "negligently destroy" defining the incorrect care. Damage, as you may already understand, is something that did not arise from the normal use of a property. Part of being a responsible tenant is notifying your landlord in writing if there is a necessary repair. I discussed this in more detail in Tenant Tips - 4 Tips From A Park City Property Management Company.
Examples
I think that providing a few examples of damage versus wear and tear will help to establish a base line for determining things on their own. It is impossible to cover every situation and terms like "reasonable" and "negligent" can be very subjective. This list is not meant to be exhaustive but rather to help establish an idea of what constitutes both concepts so the reader can make a more informed judgment going forward. With that in mind lets begin. A 
loose or sticky door handle, or a handle that falls off would be considered wear and tear but a broken door handle or door jamb from a forced entry would be considered damage. Carpet that is worn and in need of cleaning would be considered wear and tear while burns, tears, stains, and other similar items would be considered damage. The same could be applied to an linoleum or wood flooring in a property. Scuffing, dull finishes, and fading are wear and tear while gouges and tears would be damage. An oven burner or range element that no longer works would be wear and tear while a missing burner, oven racks, or other parts would be damage. Microwaves quit working, plumbing leaks, faucets drip, and disposal seize up. These items are all wear and tear. Missing microwave trays, repeatedly clogged drains, broken faucets, and a fork in the garbage disposal could all be considered damage. Cracks in walls due to settling along with faded, cracked or chipped paint is standard wear and tear while holes in walls from paintings and pictures that are not properly patched, sheet rock damage caused during moving, and an unauthorized paint color applied by a tenant would all be reasonably considered damage.
Summary
I could continue on with many more damage versus wear and tear examples but I think we all get the picture. Best practices for landlords and tenants is to always perform a walk through when moving in and use a form that spells out landlord and tenant responsibilities and allows a tenant to make note of any items or conditions in the property that are present at move in. If you encounter a situation that is perhaps not as clear as the ones listed above communicate with your tenant and work towards a reasonable compromise for all parties.
If you are interested in learning more about Park City property management download our free white page "5 Questions Every Landlord Should Ask Themselves".
There comes a time with every rental property when a lease ends. Hopefully the lease has been a positive experience for both landlord and tenant and the parting of ways is somewhat of a fond farewell. There are a few crucial time periods to remember when a lease is ending that, when adhered to, will make the transition for both parties as smoothly as possible for your Park City property management.
Notice of Termination
A lease should have a clearly defined time requirement for when a notice of termination must
be given. Ideally the lease would require the notice be in writing and the notice be given 30 days prior to termination. For example the lease we use, which is prepaired by an attorney, states that a lease can only end on the last day of the month and once the term of the lease is complete a 30 day notice must be submitted in writing. Utah law provides for a minium of 15 days notice when a tenant is on a month-to-month tenancy, unless a lease indicates otherwise. I would also suggest that going to Google, typing in "free lease agreement", and using whatever you find is not the best way to protect yourself, your property and your tenants. Make sure your lease has at least a 30 day notice requirement and that the penalties for not meeting the requirement have some teeth to them. Making a deposit refund contingent on meeting this requirement is one way to ensure a tenant will have an interest in fulfilling their obligations. Our lease has this, along with several other requirements for a deposit refund.
24 Hour Notice Of Tour
So your tenant has provided you with the appropriate notice that they will be moving out and you are wanting to find a new tenant to take their place. If you are a proactive landlord you've already got an enticing description of the property posted on various websites to help you attract a new tenant. Now an interested party is wanting to take a look at the property that is still occupied and you have to let your current tenant know. In Utah a landlord is required, by law, to provide a tenant with a 24 hour notice before entering the property, except in the case of emergency. This notice can be provided by contacting the tenant directly or leaving a notice at the property. A best practice in this scenario is to give a tenant great than 24 hours notice, if possible. Moving is a hectic ordeal at best and many tenants may feel embarrassed at the state of the property that is full of boxes and in a general state of disarray. Giving them notice to make a property more presentable can go a long way towards landing a new tenant.
30 Days Or A Forwarding Address
Now that the old tenant has left, the condo has been prepared for a new tenant and any
maintenance or cleaning items have been dealt with it is time to deal with the deposit. First and foremost you must provide a receipt to a tenant for any work done that is being subtracted from their deposit. There are also some guidelines on when any monies left from the deposit must be returned to the tenant. Utah law dictates that any portion of a security deposit to be refunded must be returned within 30 days of the lease ending or when the forwarding address is received, whichever is later. If it has been past 30 days and a tenant has not yet provided a forwarding address you as a landlord are not under an obligation to return any monies, you wouldn't have a place to return them to anyways! And if a tenant provides a forwarding address upon move out a landlord still has 30 days to determine what must be done to the property to return it to a rentable condition, assess if anything in the property could be considered damage and not wear and tear, and receive invoices from any outside contractors that may have been brought in to make repairs.
You can find more information by clicking here to visit a landlord and tenant FAQ by the Utah State Courts. If you are interested in learning more about Park City property management download our free white page "5 Questions Every Landlord Should Ask Themselves".