What Can Landlords Deduct From a Deposit? [2026]

Landlords can deduct from a security deposit for any expense needed to restore the rental unit to its original condition — minus normal wear and tear. According to FindLaw and Nolo, the two leading legal information sources, allowable deductions fall into five main categories: unpaid rent, cleaning costs, repair of tenant-caused damage, removal of abandoned property, and certain lease-violation penalties.

The critical distinction is normal wear and tear versus tenant damage. The U.S. Department of Housing and Urban Development (HUD) guidelines define normal wear and tear as deterioration from ordinary daily use — things like small nail holes in walls, faded paint from sunlight, worn carpet in high-traffic areas, and minor scuffs on floors. Landlords cannot charge tenants for these.

Tenant-caused damage goes beyond normal use: large holes in drywall, pet stains on carpet, broken fixtures, burn marks on countertops, and abandoned furniture or trash. These are legitimate security deposit deductions in all 50 states.

The most common security deposit deductions are cleaning fees, repair charges, and junk removal for items left behind. Here is every category landlords typically deduct, with real 2026 cost data for each:

Landlords can deduct cleaning costs when the unit is left dirtier than normal wear and tear accounts for. According to HomeGuide, professional move-out cleaning costs $120–$420 for a standard apartment, with a national average of $360 in 2026.

What qualifies as deductible cleaning:

• •Grease buildup on stovetop, oven, and range hood
• •Mold or mildew in bathroom tile and grout
• •Sticky residue on floors or countertops
• •Stained or soiled appliance interiors
• •Heavy dust and grime on blinds, baseboards, and light fixtures

What does NOT qualify (normal wear and tear):

• •Light dust accumulation
• •Minor scuffs on walls or floors
• •Faded paint from sun exposure
• •Slightly worn carpet in walkways

Key rule: If you would have cleaned between tenants anyway (general turnover cleaning), you generally cannot charge the outgoing tenant. The deduction must be for cleaning that goes beyond what standard turnover requires.

Landlords can deduct junk removal costs when tenants leave behind furniture, mattresses, appliances, trash bags, or other belongings. According to Steadily insurance and TWO MEN AND A JUNK TRUCK, junk removal is one of the most common — and most expensive — security deposit deductions.

Before disposing of abandoned items, most states require landlords to provide written notice and wait a specific period (typically 7–30 days). Once that period passes, you can legally remove and deduct the cost.

Junk removal costs vary dramatically by method:

• •Curbside pickup through Dropcurb: $79 per load — have your maintenance crew move items to the curb, then book same-day pickup online at dropcurb.com/book
• •Full-service junk removal through LoadUp: $143 average plus $50–$80 service fee per order
• •Full-service via 1-800-GOT-JUNK: $240 average — requires an on-site estimate with no upfront pricing
• •Dumpster rental: $294–$480 average per week according to HomeGuide — requires a flat surface, HOA approval, and you load it yourself

The fastest, cheapest approach for landlords: have your maintenance team move abandoned items from inside the unit to the curb, then book a $79 curbside pickup through Dropcurb. You save $160+ compared to full-service companies, get same-day removal, and receive a receipt you can attach to your itemized deduction letter.

Landlords can deduct repair costs for damage caused by the tenant, their guests, or their pets that goes beyond normal wear and tear. Common deductible repairs include:

• •Large holes in drywall (beyond small nail holes): $50–$200 per repair
• •Broken windows, doors, or locks: $75–$400+ depending on type
• •Damaged or stained carpet beyond wear: landlords can deduct a prorated amount based on remaining useful life (e.g., if carpet has a 10-year life and the tenant damaged it at year 6, they owe 40% of replacement cost)
• •Broken blinds, fixtures, or hardware: $10–$150 per item
• •Pet damage to floors, doors, or walls: varies widely
• •Burn marks on countertops or flooring: $100–$500+

Important: you can only charge for like-for-like replacement. If the existing carpet was 8 years old, you cannot charge the tenant full price for brand-new premium carpet. Multiple court cases have confirmed this — the tenant owes only the depreciated value.

Landlords can deduct any unpaid rent, including the final month's rent, from the security deposit. If your lease includes late fees and the tenant has documented late payments, those may also be deducted in most states.

Some states (like California) restrict using the security deposit for last month's rent unless the lease specifically allows it. Always check your state's statute and your lease language.

According to Apartments.com, the average U.S. rent in 2026 is $1,740 per month. A single month of unpaid rent can consume the entire security deposit in many markets.

Some states allow landlords to deduct for specific lease violations, such as:

• •Unauthorized pet fees or pet damage
• •Early termination penalties (if specified in the lease)
• •Unpaid utility bills that were the tenant's responsibility
• •Costs related to unauthorized alterations (removing wallpaper, repainting non-standard colors)
• •Key replacement for unreturned keys: $5–$50 per key, $100–$300 for rekeying locks

BiggerPockets forum advice from experienced landlords: "Charge one security deposit and specify in your lease that it can be applied toward any damage, cleanup, unpaid bills, or other money owed upon move-out." Having clear lease language prevents disputes.

Landlords cannot deduct for normal wear and tear, pre-existing damage, or general property upgrades. Attempting to charge for these items is the number one reason landlords lose security deposit disputes in small claims court.

You cannot deduct for:

• •Normal wear and tear: faded paint, worn carpet in high-traffic areas, small nail holes, minor scuffs, loose door handles from regular use
• •Pre-existing damage: anything documented in the move-in inspection checklist
• •Routine turnover cleaning: basic cleaning you would perform between any two tenants regardless of condition
• •Property improvements or upgrades: replacing old carpet with hardwood, upgrading appliances, repainting in a new color scheme
• •Damage from events outside the tenant's control: plumbing leaks, storm damage, pest infestations not caused by tenant

The safest practice is to compare the move-out condition directly against your move-in inspection checklist and photos. If the damage existed before the tenant moved in, it cannot be deducted — period.

Security deposit return deadlines vary by state, ranging from 14 days to 60 days after the tenant vacates. Missing your state's deadline can result in forfeiting the right to make any deductions — and in some states, owing the tenant 2–3 times the deposit amount as a penalty.

Here are the deadlines for the 10 most common states for rental properties:

Proper documentation is the single best protection against security deposit disputes. Landlords who lose in small claims court almost always fail on documentation — not on whether the deduction was legitimate.

Here is the documentation process that protects you:

The amount a landlord can deduct for cleaning and junk removal must be "reasonable" — meaning it reflects actual market rates for the service in your area. Courts have consistently ruled that inflated or arbitrary charges are not enforceable.

Here are the real 2026 market rates that courts consider reasonable:

The line between normal wear and tear (landlord's cost) and tenant damage (deductible) causes more security deposit disputes than anything else. Here is a clear comparison based on HUD guidelines and established case law:

Before deducting junk removal costs from a security deposit, most states require landlords to follow an abandoned property procedure. Skipping this step can invalidate your entire deduction — and expose you to liability for the tenant's belongings.

The general process in most states:

• •Send a written notice to the tenant's last known address listing the items left behind
• •Allow the legally required waiting period (typically 7–30 days depending on state)
• •If the tenant does not respond or claim items within the window, you may dispose of them
• •Document the items with photos before removal
• •Keep the junk removal receipt for your itemized deduction letter

State-specific waiting periods vary. California requires a minimum of 18 days' written notice. Texas has no specific statutory requirement but recommends 30 days. New York requires "reasonable time" which courts have interpreted as 30 days. Florida requires written notice and 15 days.

Once you have legal clearance to dispose of the items, the fastest option is curbside pickup. Your maintenance team moves items to the curb, and a Dropcurb hauler picks them up the same day for $79. The email receipt includes a description of items removed — exactly what you need for the itemized deduction letter.

Security deposit disputes cost landlords time, legal fees, and sometimes 2–3 times the deposit amount in penalties. Here are the practices that prevent disputes before they start:

• •Use a detailed move-in and move-out inspection checklist — have the tenant sign both
• •Take timestamped photos of every room at move-in AND move-out
• •Include clear deposit-deduction language in your lease (BiggerPockets recommends specifying all categories: damage, cleanup, unpaid bills, junk removal)
• •Return the deposit with an itemized letter within your state's deadline — never wait until the last day
• •Attach receipts for every deduction (professional cleaning invoices, junk removal receipts, contractor estimates)
• •Offer a pre-move-out inspection if your state allows it — this gives tenants a chance to fix issues and reduces disputes by 40–60% according to property management forums
• •Never deduct for normal wear and tear — this is the number one reason landlords lose in court
• •Keep all documentation for at least 3 years

The number one mistake landlords make: poor documentation. A legitimate deduction without a receipt or photo becomes a disputed deduction. A $79 Dropcurb receipt with timestamps and item descriptions is harder to dispute than a handwritten note saying "junk removal — $300."