Every landlord needs security deposits to protect their rental property investments. These deposits cover minor repairs and cleaning costs when your tenants move out. But what happens when repair costs are more than the security deposit amount you collected?
Document the damage thoroughly
Create a complete record of property damage to recover repair costs successfully. Follow these steps right after discovering the damage:
- Take date-stamped photos and videos from multiple angles
- Ask licensed contractors for written repair estimates
- Save receipts for all materials and labor costs
- List all damages separately from normal wear and tear
- Compare with move-in inspection records and photos
Creating a thorough record of property damage stands as your first line of defense in recovering repair costs. Additionally, these help strengthen your case if you need to take legal action later.
Recover costs when damages exceed deposits
New Jersey law gives you several options when repair costs exceed the security deposit.
The first thing you can do is mail the former tenant an itemized statement within 30 days after they move out. It shows how you used their deposit and proves the remaining amount they still owe.
If they refuse to pay, you can file a complaint in Small Claims Court for amounts up to $3,000. Include your photos, receipts, and proof of how you applied the security deposit.
If the damages go beyond $3,000, file a special civil suit in Superior Court instead. In either case, support and advice from an experienced attorney can help make the legal process smoother.
Protect your property and reputation as a landlord
Staying professional throughout the recovery process is essential—even when facing major property damage. Follow all legal steps without losing your cool. When you handle tenant damage properly, you protect your property value and maintain your reputation as a fair landlord.
