Security Deposit Deductions
Guide For Owners On Move Out Charges to Residents
Owner Guide: Security‑Deposit Charges, Depreciation & Tenant Damage
This reference explains what Shane Wilson Real Estate can and cannot deduct from a tenant’s security deposit, how depreciation works, and typical charges for common turnover items in Tennessee & Georgia (2025 market rates).
1 When can a tenant be charged?
- Unpaid rent / utilities
- Excessive cleaning (beyond broom‑clean)
- Damage beyond normal wear & tear
- Missing items originally provided with the unit
You cannot charge for:
- Normal wear (light scuffs, a few nail holes, minor carpet traffic)
- Items that have reached the end of their useful life (fully depreciated)
- Upgrades you elect to perform at turnover
2 How depreciation works
| Term | What it means |
|---|---|
| Useful Life | Years HUD says an item should last (see table below). |
| Age at Move‑out | Years since the item was installed or last replaced. |
| Remaining Life % | (Useful Life − Age) ÷ Useful Life × 100 % |
| Prorated Charge | Remaining Life % × Flat Replacement Charge. |
Example: Refrigerator life = 10 yrs, age = 6 yrs → 40 % life left → tenant pays 40 % of flat charge.
3 Quick‑reference depreciation table
| Item | Useful Life | Flat Charge * | 50 %‑life Charge |
|---|---|---|---|
| Flat Paint (Family) | 3 yrs | $200 / room | $100 |
| Carpet (Family) | 5 yrs | $400 / room | $200 |
| Vinyl/Linoleum | 5 yrs | $300 / room | $150 |
| Interior Door | 10 yrs | $250 | $125 |
| Window Blinds | 3 yrs | $90 | $45 |
| Refrigerator | 10 yrs | $900 | $360 |
| Range/Oven | 20 yrs | $1,200 | $600 |
| Hot‑Water Heater | 10 yrs | $1,100 | $440 |
| HVAC Split System | 15 yrs | $5,500 | $1,833 |
| Bathroom Vanity – complete | 20 yrs | $1,100 | $550 |
| Microwave | 10 yrs | $300 | $120 |
| Dishwasher | 10 yrs | $600 | $240 |
| Light Fixture (Std) | 15 yrs | $150 | $75 |
| Smoke Detector | 10 yrs | $60 | $24 |
| Roof – Shingles | 20 yrs | $12,000 | $6,000 |
| Asphalt Paving (5 k sq ft) | 15 yrs | $15,000 | $7,500 |
* Flat charges reflect 2025 Tennessee/Georgia mid‑market averages used by Shane Wilson Real Estate. Premium finishes are billed at actual invoice cost.
4 Documentation we supply
- Move‑in inspection with photos & video.
- Move‑out inspection noting condition and item ages.
- Depreciation worksheet (Google Sheet) showing the math for each deduction.
- Invoices/receipts for any third‑party work.
This package keeps us compliant with:
- HUD Special Claims Guide, Appendix 5D (for HUD‑contract units)
- T.C.A. § 66‑28‑301 (Tennessee) & O.C.G.A. § 44‑7‑33 (Georgia)
5 Key takeaways for owners
- Deductions must be proportional to remaining life—never the full cost unless the item is new.
- An item older than its useful life = $0 tenant charge (it had to be replaced anyway).
- Good records protect both you and us from deposit disputes.
© 2025 Shane Wilson Real Estate, LLC. All Rights Reserved.
Shane Wilson Real Estate, LLC
GA R.E. Lic 77655 | TN Lic 264740
Phone: 423-888-0119
Address: 313 N. Selvidge St. Suite 101,
Dalton, GA 30720