Terra Residential Services
March 2012

Address
14655 Northwest Freeway
Suite 124
Houston, Texas 77040

Phone
(713) 895- 9966
(800) 275-7776

Email
info@terraresidential.com

Website
TerraResidential.com

Houston's Only Certified Residential
Management Company.
Specializing in Investment Brokerage & Management Since 1990.


Serving You

Michael Mengden
MPM®, RMP®, GRI®

President/Broker
(713) 895-9966 x305
mmengden@terraresidential.com

Bridget Mengden
Accounting
(713) 895-9966 x304
bmengden@terraresidential.com

James Dominy
Property Manager
(713) 895-9966 x308
jdominy@terraresidential.com

Jennifer Steward
Property Manager
(713) 895-9966 x306
jsteward@terraresidential.com

Carolyn Marsh
Assistant Property Manager
(713) 895-9966 x303
cmarsh@terraresidential.com


Our Services
  • Leasing
  • Make Readies
  • Rent Collection
  • Evictions
  • Electronic Statements
  • Online Payments
  • Property Acquisitions
  • Sales
  • And More

Announcements

Check Your Insurance: Events can happen - flood, extreme heat, hurricanes, fire, and more! It is important to check your insurance to obtain the best coverage possible and ensure that it is current. Review now with your insurance agent before a disaster/emergency occurs.

If An Emergency Occurs: Our first priority during any emergency is to handle the situation, taking any necessary measures for the safety of your property and your tenants. Then, we will contact you as soon as we are able.


Our Associations
Associations

The Security Deposit vs. Normal Wear & Tear

If you have 100 property managers in a meeting, the majority will agree that settling a security deposits dispute is one of the more difficult tasks in property management, particularly when it comes to determining "normal wear and tear," also referred to by some as "ordinary wear and tear."

Why does this become such a difficult problem? It is because there is NO clear-cut definition for this phrase in legislation. It becomes very subjective, depending on the party or parties involved. You will get different viewpoints from a property owner, a property manager, a judge, an attorney, a vendor, and mostly likely, an opposing view from the tenant. Tenants are prone to use this term, particularly in court, to defend any type of damage, large or small. The burden of proof usually falls to the landlord to show that the damage is not "normal wear and tear."

The laws that govern the security deposit vary from state to state, but the term "normal wear and tear" generally describes the allowable amount of use of a rental without the tenant being financially responsible for repairs or maintenance. A certain amount of "normal" use of the rental unit will result in an anticipated and reasonable amount of wear that will result in the need for repair, replacement, or other maintenance work.

The law generally will rule the tenant should not be responsible for these costs because it is normal maintenance and the cost of being a landlord. However, neither the courts nor the legislators have defined exactly what "percentage" of this maintenance is the owner's responsibility or that of the tenant.

How do you determine what to do about a "normal wear and tear" issue in a security deposit? It is not easy, but there are definite steps to avoid or reduce the problem.

  • Put the property in good condition before the tenant moves in. Document the condition in writing and pictures before any move in, and then have the tenant agree and sign to the condition of the property.
  • Be realistic about the condition of the property. Is the carpet new, in good condition, or is it just serviceable for this tenant? Plan to accept what items will not stand up to tenant charges when they move out, such as a frayed or worn carpet.
  • When the tenant moves, consider how long the tenant has been there. There is a big difference between a six months and five-year tenancy. Then, if necessary, figure out a percentage for the maintenance item in question that is fair to both tenant and owner.
  • Identify the problems that are actual "damage." Normal wear and tear does not apply to filth - heavy soil, black marks, dye stains, bleach stains, etc. It does not apply to negligence, such as allowing mildew to collect on walls or not reporting a toilet leak that caused damage. It does not apply to abuse, such as ripped linoleum from a refrigerator installation, punching a hole in the wall, or stained window coverings.
  • Use common sense - is it really worth a court battle to fight over carpet cleaning when a tenant has been in the property 3 years?

It is much less expensive to settle a dispute than go to court with a shaky defense on "normal wear and tear." As your property management company, we do our best to properly prepare the residence before the tenant moves in and document the condition. Then we endeavor to handle the security deposit disposition expediently and realistically when the tenant moves out to avoid disputes whenever possible.

 

Terra Residential and CNR
partner to improve
Cash Flow!

CNR Insurance Brokerage Services - 8% Insurance Rate Discount for TERRA RESIDENTIAL CUSTOMERS
- Up to $500,000 Personal Liability Protection PER PROPERTY
- Lower Rates for Real Estate Investors
- Broad Coverage Form
- Current CNR Customers can call for these greater discounts
- This product is for Texas, Oklahoma, and Arizona

Example Quote: $120,000 Home, Built in 2006
ANNUAL PREMIUM: $639.00
CALL CNR TODAY

972.248.2415 | Toll Free 800.539.1744 | Fax 972.248.4294

info@cnrbrokerage.com | www.cnrbrokerage.com


The material provided in this newsletter is for informational and educational purposes only. It is NOT legal advice.
Although we believe this material is accurate, we cannot guarantee that it is 100% without errors.

 

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