In some cases, landlords are allowed to deduct cleaning fees from a tenant’s security deposit. However, there are specific rules and regulations that determine when and how this can be done. Generally, landlords can only deduct for cleaning if the tenant has left the property in a significantly dirtier condition than it was in when they moved in. Additionally, the landlord must provide the tenant with a detailed list of the cleaning charges and must give the tenant an opportunity to contest the charges before deducting them from the security deposit. In some jurisdictions, there may be specific laws or regulations that limit or prohibit landlords from deducting for cleaning, so it’s important for both landlords and tenants to be aware of the laws in their area.
Landlord’s Responsibility to Clean
As a landlord, you have a responsibility to provide tenants with clean and habitable premises. This means that you are responsible for scheduling regular cleaning of common areas, such as hallways, stairs, and laundry rooms. You are also responsible for cleaning individual units before new tenants move in.
Cleaning Costs
- The cost of cleaning can vary depending on the size and condition of the property. Factors that can affect the cost of cleaning include:
- The type of cleaning required (e.g., regular cleaning, deep cleaning, or move-out cleaning)
- The size of the property
- The condition of the property
- The frequency of cleaning
- The location of the property
Deductions from Security Deposits
- In some cases, landlords may be able to deduct the cost of cleaning from a tenant’s security deposit. However, this is only allowed if the tenant has caused damage to the property or if they have failed to clean the property properly upon move-out.
- If you plan to deduct the cost of cleaning from a tenant’s security deposit, you must provide the tenant with a written notice of the deduction. The notice must include the amount of the deduction, the reason for the deduction, and a copy of the cleaning bill.
Landlord Tips for Cleaning
- To avoid disputes with tenants, it is important to keep accurate records of all cleaning expenses. You should also make sure that you have a written cleaning policy in place. Your cleaning policy should outline the frequency of cleaning, the types of cleaning that will be performed, and the costs associated with cleaning.
- If you hire a cleaning company, you should make sure that the company is licensed and insured. You should also get a written estimate for the cleaning services before you hire the company.
- When you clean a property, you should always use high-quality cleaning products and equipment. You should also take care to clean all areas of the property thoroughly.
| Expense | Deductible from Security Deposit? |
|---|---|
| Regular cleaning | No |
| Deep cleaning | Yes, if caused by tenant damage or neglect |
| Move-out cleaning | Yes, if tenant fails to clean properly |
Types of Cleaning Deductions
Landlords can deduct certain types of cleaning costs from the rental income they report on their tax returns. However, only specific types of cleaning qualify for a deduction. In general, cleaning costs fall into two categories: ordinary and necessary repairs and improvements.
Ordinary and Necessary Repairs
These costs are deductible as long as they are incurred to maintain the property in its existing condition.
- Routine cleaning, such as vacuuming, dusting, and mopping.
- Cleaning carpets and upholstery.
- Pest control.
- Repairs to broken appliances or fixtures.
- Repairs to the plumbing, heating, and cooling systems.
Improvement
These costs are not deductible because they add value to the property. However, landlords can depreciate the cost of improvements over time.
- Remodeling or renovation of the property.
- Adding new appliances or fixtures.
- Improving the landscaping.
- Building a new addition to the property.
In addition to the above, landlords can also deduct the cost of cleaning supplies, such as cleaning solutions, mops, and brooms. However, these costs must be reasonable and necessary.
| Type of Cleaning | Deductible | Examples |
|---|---|---|
| Ordinary and Necessary Repairs | Yes | Routine cleaning, pest control, and repairs to appliances |
| Improvements | No | Remodeling, adding new appliances, and landscaping |
| Cleaning Supplies | Yes | Cleaning solutions, mops, and brooms |
When Cleaning Deductions Are Allowed
Generally, landlords are not allowed to deduct cleaning costs from security deposits unless the tenant has left the property excessively dirty or damaged. However, there are some specific instances when cleaning deductions may be allowed.
- Excessive Cleaning: If the tenant has left the property in an excessively dirty or unsanitary condition, the landlord may be able to deduct the cost of cleaning from the security deposit. This could include things like excessive dirt, grease, or grime; pet waste; or hazardous materials.
- Damage to the Property: If the tenant has damaged the property, the landlord may be able to deduct the cost of cleaning from the security deposit. This could include things like holes in the walls, broken windows, or damaged appliances.
- Lease Agreement: If the lease agreement specifically states that the tenant is responsible for cleaning the property before moving out, the landlord may be able to deduct the cost of cleaning from the security deposit.
| Condition of Property | Deduction Allowed |
|---|---|
| Excessive Cleaning | Yes, if the property is left excessively dirty or unsanitary |
| Damage to the Property | Yes, if the tenant has damaged the property |
| Lease Agreement | Yes, if the lease agreement states the tenant is responsible for cleaning |
In most cases, landlords are required to provide tenants with a written statement detailing the cleaning deductions. This statement should include a description of the cleaning that was required, the cost of the cleaning, and any other relevant information.
If you are a landlord, it is important to be familiar with the laws in your state regarding cleaning deductions. You should also make sure to include a cleaning clause in your lease agreement. This will help to protect you in the event that the tenant leaves the property excessively dirty or damaged.
Limitations on Cleaning Deductions
Landlords can deduct cleaning expenses incurred to keep their rental properties clean and habitable for tenants. However, there are certain limitations on these deductions. These limitations are designed to prevent landlords from abusing the deduction and to ensure that they are only deducting expenses that are reasonable and necessary.
Non-recurring Cleaning Expenses
- Landlords can deduct the cost of cleaning a rental property after a tenant moves out, but they cannot deduct the cost of cleaning the property between tenants.
- For example, if a landlord hires a cleaning service to clean a rental property after a tenant moves out, the landlord can deduct the cost of the cleaning service on their tax return.
- However, if the landlord hires a cleaning service to clean the property between tenants, the landlord cannot deduct the cost of the cleaning service on their tax return.
Recurring Cleaning Expenses
- Landlords can deduct the cost of recurring cleaning expenses, such as the cost of hiring a cleaning service to clean the property on a regular basis.
- However, the amount of the deduction is limited to the amount that is reasonable and necessary to keep the property clean and habitable for tenants.
- The IRS does not provide a specific guideline for what is considered a reasonable and necessary cleaning expense.
- However, landlords should be able to justify the amount of the deduction based on the size of the property, the number of tenants, and the frequency of the cleaning.
Capital Expenditures
- Landlords cannot deduct the cost of capital expenditures, such as the cost of replacing a carpet or painting the property.
- Capital expenditures are expenses that are incurred to improve the property, not to maintain it.
- Therefore, the cost of capital expenditures must be capitalized and depreciated over the life of the asset.
| Expense | Deductible? |
|---|---|
| Cleaning after a tenant moves out | Yes |
| Cleaning between tenants | No |
| Recurring cleaning expenses | Yes, but limited to reasonable and necessary amount |
| Capital expenditures | No |
And that’s all there is to it! A landlord can deduct cleaning costs from a security deposit, but only for certain things and up to a certain amount. If you’re a landlord, be sure to follow the rules in your state so you don’t get in trouble. And if you’re a tenant, be aware of your rights so you don’t get taken advantage of.
Thanks for reading! If you have any more questions about landlord-tenant law, be sure to check out our other articles, or better yet, consult with a local attorney.