Under state security deposit laws (such as CA Civ Code § 1950.5 or NY Real Prop L § 238-A), landlords may only deduct for damages exceeding “ordinary wear and tear.”
Damage vs. Normal Wear and Tear
Landlords must distinguish between the natural deterioration of a property and actual damage caused by abuse or neglect.
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Normal Wear and Tear: Includes minor scuffs, fading paint, or a few small nail holes from hanging pictures. Landlords generally cannot charge for these.
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Property Damage: Includes large holes, excessive “Swiss cheese” walls from dozens of nails, water damage from an unreported leak, or deep gouges in flooring.
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The “Useful Life” Rule: Most jurisdictions require landlords to factor in the age of the item. For example, if a tenant ruins a 10-year-old carpet that has reached the end of its legal “useful life,” the landlord may not be able to charge for full replacement.
Best Practices for Compliance
To legally withhold funds, landlords should provide an itemized statement of deductions and copies of receipts within the state-mandated window (typically 14 to 30 days after move-out). Using a move-in/move-out inspection checklist is the standard legal defense for these charges.
The information for this answer was found on our Security Deposit Return Letter answers.