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“How can I avoid detection as I falsify the value of some furniture to make a profit illegally?”
The depreciation on this furniture is less than one month’s rent. In any property, in any city in the world. Withholding the full deposit is criminal.
This will differ by your state but I will tell you what is do in NY.
I have a schedule of security deposit reductions included in the lease for all major appliances and furniture (if included). That way if anything breaks and can’t be fixed there is no further discussion. I reduce what is in the schedule and that is.
For all other issues, NY requires proof of a receipt or invoice in order to reduce a security deposit. For example, I had a tenant break some drywall, I had to get a quote from a contractor for the work to patch and repaint the wall. I was only able deduct what is on that quote.
Additionally, I take photos and a video of the apartment prior to the tenants moving in. I have them sign a “move in inspection” document the day they move in to show that agree on the condition of the apartment when they receive it. And then once they finally move out I take pictures and videos of the apartment prior to changing to locks.
I’ve only ever had to deduct a full security deposit once in my life. That said I try to do everything I can to protect myself.
Visual Storyteller
All, thanks for the responses and here’s the whole situation: CHICAGO Tenant paid $1,200 in security deposit for a sublease for a furnished place. The couch was $1500 and less than a year old and is ruined (stains all over). The bedframe is broken, but I may not have any evidence to say otherwise. The tenant has not paid any rent whatsoever, and has ghosted me ($6k stacked up now). He resigned with the building (shocking they’d allow that) so my liability ends Feb 15. I will be suing him for back rent, and would also like to ensure the couch is replaced as well.
The only three things that are guaranteed in life are:
Death, taxes, and for there to be no limit to a landlords’ greed
I hope you have solid legal docs
What does the lease say? Also, are you charging anything over what the couch and bed frame cost/was worth? If the couch and bed frame were $2k and a suitable replacement is $2k and the security deposit was $2k that looks a lot more reasonable than if they were ikea and you’re trying to profit. How reasonable you look goes a long way.
Property manager here. Not sure what state you are in but in Nevada you better have documented proof. Walk through paperwork, photos, lease verbiage. They might not fight it but if they do and you have 0 proof that the condition of the couch was good prior to them moving in you will lose. Tenant laws allow tenants to get away with almost anything now days.
Check the rules in your state. It’s not as easy as just keeping the security deposit. You have to provide documentation, etc. Oftentimes Landlord’s that fail to return security deposits can be liable for 3x the amount if it was found they unlawfully did so.
I did this in Illinois and I just let them sue me. We had to give back half—and that was a very tenant friendly judge. Next time think of waiving the deposit and simply charge a non refundable move in fee. That’s what I do now.