Normal Wear and Tear vs Tenant Damage Deductions

Quick Answer

There is no federal deposit statute, so what you may deduct comes from your state’s law. The common rule is that you may charge for damage the tenant caused and may not charge for ordinary wear and tear. California Civil Code § 1950.5(b)(2) and (e), Texas Property Code § 92.104(a) and (b), and New York General Obligations Law § 7-108(1-a)(b) all follow it. Many courts and legal-aid guides add that a damaged item is priced at its remaining value, not the cost of a new one. IRS depreciation schedules are for taxes and do not set deposit deductions. Statute text last checked October 2, 2026.

Key Takeaways

• State law controls. Look up your state’s deposit statute for what you may deduct, the deadline, and the penalty.
• Wear and tear stays with you. The statutes cited here bar a deduction for ordinary wear and tear.
• Damage is chargeable. Accident, carelessness, or abuse by the tenant, a household member, or a guest can support a deduction.
• Price damage at remaining value. Use a useful-life benchmark you can support, such as a product warranty or a supplier’s rated life.
• Tax depreciation is a different subject. IRS Publication 527 covers depreciation for income tax and does not govern what you charge a tenant.

1. Wear and Tear or Damage

Ordinary wear and tear is the gradual deterioration that comes from living in a unit:

• Traffic lanes and furniture dents in carpet.
• Small nail holes and light scuffs on walls.
• Sun-faded blinds, drapes, or flooring.
• Dulled paint and worn faucet washers.

Damage comes from accident, carelessness, or abuse:

• Burns, large stains, or pet urine that soaks through carpet.
• Large drywall holes and broken doors.
• Unapproved dark paint or wall coverings.
• Broken windows, cracked sinks, and bent blinds.

State statutes put the line in slightly different places, so read yours. Texas, for example, defines normal wear and tear in Property Code § 92.001(4) as deterioration from the intended use of a dwelling, and excludes deterioration from negligence, carelessness, accident, or abuse.

2. Pricing a Damage Deduction

Courts and legal-aid guides in many states expect a deduction for a damaged item to reflect what the item was still worth. A common method is:

Deduction = replacement cost × (useful life − age) ÷ useful life

Example. A tenant ruins a carpet that cost $1,000 to replace. Using a supplier’s 10-year rated life for the carpet, and given that it was 4 years old, the deduction is $1,000 × 6 ÷ 10 = $600. If the carpet was past its rated life, the remaining value is zero.

No federal table sets the useful life. Use the benchmark you can document, and expect that your state or a judge may use another. See the California carpet guide for how § 1950.5 applies.

3. Who Must Prove What

You will usually be asked to show what you charged and why. Texas puts the burden on the landlord by statute (Tex. Prop. Code § 92.109(c)). In other states a judge may ask the same of you as a practical matter. Records that carry a charge:

1. A move-in condition report signed and dated by the tenant.
2. Move-in and move-out photographs from matching angles.
3. Invoices and receipts for the work you are charging. California requires copies for repair and cleaning charges over $125 (Civ. Code § 1950.5(h)(2)).
4. Records of the item’s age, such as a purchase invoice or maintenance log.

Records made at the time of the event are the strongest form. See the guide on landlord decision records.

4. Questions Owners Ask

Can I charge for repainting after a long tenancy? Not for ordinary wear. Charge only for damage beyond wear and tear, priced at remaining value.

Does a lease clause make a cleaning fee chargeable? Not necessarily. California bars a lease provision that calls a deposit nonrefundable (Civ. Code § 1950.5(n)). Check your state before you use one.

Is a pet deposit separate from the security deposit? It depends on your state. California counts pet deposits within its cap, for example. Read your statute.

What This Guide Does Not Cover

This guide covers the general approach to wear and tear and damage deductions from residential deposits. It describes the statutes cited as of the check date above and does not predict how a court will rule on your facts.

It does not cover:

• Commercial lease deposits and tenant improvement allowances.
• Local rules on interest paid on deposits.
• State deadlines, which range by state.
• Tax depreciation under the Internal Revenue Code.