How to handle Security Deposit Disputes

By PropsManager Team | Dec 17, 2025

How to handle Security Deposit Disputes

1. The Move-In Inspection

The defense starts before the tenant moves in. You must have a signed "Move-In Condition Report" with photos documenting the state of the property.

2. The Move-Out Inspection

Walk through the unit when they leave. Compare it to the Move-In report. Take photos of every damage you intend to charge for.

3. Itemized Deductions

You cannot just say "Cleaning: $500." You need to be specific:

• "Carpet Cleaning (ABC Carpet Co. Invoice #123): $150"
• "Wall Repair (Materials + 2 hours labor): $100"

4. Wear and Tear vs. Damage

• Wear and Tear: Faded curtains, traffic patterns in carpet, small nail holes. (Landlord pays).
• Damage: Cigarette burns, smashed door, red wine stains. (Tenant pays).

5. Deadlines

Send the check and itemized list within your state's legal limit (usually 30 days).

Conclusion

Documentation is your best friend. If you have photos and receipts, you will likely prevail in small claims court.