Move-Out Inspection Purpose and Process
The move-out inspection determines what, if any, security deposit deductions are justified based on damage beyond normal wear and tear. This critical inspection must be conducted methodically, comparing the property's current condition to the move-in inspection documentation to identify tenant-caused damage.
Legal Note: California law is strict about security deposit deductions. You can ONLY deduct for actual damage beyond normal wear and tear, unpaid rent, and necessary cleaning costs. Missing the 21-day deadline can cost you the entire deposit plus penalties.
Understanding these distinctions protects you from legal disputes and ensures compliance with California's tenant-friendly laws.
Move-Out Inspection Timing and Legal Requirements
When to Conduct Inspection
- Initial inspection: Within 48 hours after tenant vacates and returns keys
- Pre-move-out option: California allows initial inspection 2 weeks before lease end (give tenant opportunity to remediate)
- Final assessment: Complete documentation within 21 days for security deposit accounting
California Legal Requirements
- 21-day deadline: Must provide itemized deduction statement + remaining deposit (or explanation for retaining full deposit) within 21 days of tenant vacating
- Itemization required: Each deduction must describe specific damage, repair needed, and cost
- Receipts/estimates: Provide receipts for work completed or good-faith estimates for work to be done
- Photos as evidence: Document all claimed damage with dated photographs
- Penalty for non-compliance: Failure to return deposit + itemization within 21 days can result in forfeiting all deductions plus paying tenant damages up to 2x deposit amount
Normal Wear and Tear vs. Damage
Normal Wear and Tear (NOT Deductible)
Normal deterioration from ordinary use over time - tenant cannot be charged:
- Carpet wear in traffic paths after 5+ years
- Faded or sun-damaged window coverings
- Minor scuff marks on walls
- Worn finish on older hardwood floors
- Paint fading or minor discoloration (2+ years)
- Loose grouting or caulking from age
- Minor scratches on older appliances
- Worn cabinet hardware from normal use
- Faded or aged countertops
- Small nail holes from hanging pictures (1-2 per wall)
Tenant Damage (DEDUCTIBLE)
Damage caused by negligence, accidents, abuse, or unauthorized alterations:
- Burns, stains, or large tears in carpet
- Holes in walls (larger than nail holes)
- Broken windows, doors, or fixtures
- Pet damage (scratches, odors, stains)
- Missing or broken window blinds
- Damaged appliances beyond normal wear
- Broken tiles, cracked countertops
- Unauthorized paint colors requiring repainting
- Excessive filth requiring deep cleaning
- Missing or damaged property items (fixtures, smoke detectors)
Key Distinction
Key Rule: Ask yourself, "Would this have occurred even with careful, normal use over time?" If yes, it's wear and tear (not deductible). If damage occurred due to tenant action or inaction, it's deductible damage.
Exterior Move-Out Inspection
Building Exterior
- ☐ Siding/exterior walls: Compare to move-in photos, note any new damage
- ☐ Windows/screens: Check for cracks, missing screens, damage not present at move-in
- ☐ Doors: Verify no new damage, all locks functional, weatherstripping intact
- ☐ Garage door: Test operation, check for new dents or damage
- ☐ Exterior lighting: Verify all fixtures intact, bulbs present
Landscaping and Yard
- ☐ Lawn condition: Compare to move-in; excessive neglect may be deductible
- ☐ Sprinkler system: Test for new damage, broken heads, missing components
- ☐ Fencing: Note any new damage, missing boards, broken gates
- ☐ Weeds/overgrowth: Excessive neglect beyond normal maintenance may justify landscaping costs
- ☐ Debris removal: Note any personal property, trash, or items left behind requiring disposal
- ☐ Deck/patio: Check for new damage, stains, or deterioration beyond normal wear
Interior Move-Out Inspection
Each Room Assessment
- ☐ Floors: Identify stains, burns, tears, scratches not present at move-in
- ☐ Carpet condition: Assess stains, pet damage, burns, tears (compare to move-in photos)
- ☐ Walls: Count holes, measure size, note unauthorized paint, excessive damage
- ☐ Ceilings: Check for new stains, holes, damage
- ☐ Windows: Verify all open/close properly, no new cracks, screens present
- ☐ Window coverings: Check for missing, broken, or damaged blinds/curtains
- ☐ Doors: Test operation, check for holes, missing hardware, damage
- ☐ Closets: Inspect for damage, verify rods and shelves intact
- ☐ Light fixtures: Verify all present and functional, note missing bulbs or globes
- ☐ Baseboards/trim: Check for new damage beyond normal wear
Kitchen Condition
- ☐ Appliances - Refrigerator: Check for damage, missing shelves, excessive dirt requiring deep clean
- ☐ Appliances - Stove/oven: Assess cleanliness, damaged burners, missing drip pans, oven condition
- ☐ Appliances - Dishwasher: Check for damage, excessive soil, racks intact
- ☐ Appliances - Microwave: Verify condition, not excessively dirty or damaged
- ☐ Cabinets: Check for broken doors/drawers, missing hardware, damage
- ☐ Countertops: Identify chips, cracks, burns, stains not present at move-in
- ☐ Sink/faucet: Check for damage, leaks, excessive mineral buildup
- ☐ Floors: Assess stains, damage beyond normal wear
- ☐ Walls/backsplash: Check for grease buildup, damage, missing tiles
- ☐ Garbage disposal: Test operation, verify functioning
Bathroom Condition
- ☐ Toilet: Check for cracks, leaks, proper function, excessive staining
- ☐ Sink/vanity: Inspect for damage, leaks, missing hardware
- ☐ Shower/tub: Check for caulking damage, mold beyond normal, chips, cracks
- ☐ Tiles/grout: Identify missing tiles, damaged grout, excessive mold/mildew
- ☐ Exhaust fan: Test operation, check for excessive dirt
- ☐ Mirror/medicine cabinet: Verify intact, no damage
- ☐ Fixtures (towel bars, TP holder): Check all present and properly mounted
- ☐ Floors: Assess water damage, staining, tile damage
Cleaning Standards Assessment
"Broom Clean" Standard
California courts have established "broom clean" as the general standard - tenant must clean to approximately the same level of cleanliness as when they moved in (comparing to move-in photos).
Deductible Cleaning Issues
- Kitchen: Excessive grease, oven not cleaned, refrigerator dirty inside, sticky floors
- Bathrooms: Excessive soap scum, mold buildup, mineral deposits, toilet staining
- Carpets: Professional cleaning if excessively soiled (not normal wear)
- Windows: Excessive dirt, grime requiring professional cleaning
- Walls: Excessive smudges, dirt, marks requiring repainting (not normal)
- General: Trash removal, excessive dust, pet hair accumulation
NOT Deductible for Cleaning
- Normal level of dust from living in property
- Carpet cleaning for normal traffic wear
- Repainting for normal fading or minor marks
- Light dirt in oven or refrigerator
- Minor bathroom soap scum
Mechanical Systems Check
HVAC System
- ☐ Heating/cooling operation: Test both systems, verify proper function
- ☐ Filter condition: Check if excessively dirty (deductible if tenant responsible for changes)
- ☐ Vents/registers: Verify all present, not damaged or excessively dirty
- ☐ Thermostat: Confirm functional, batteries if needed
Plumbing and Electrical
- ☐ All faucets: Test for proper operation, check for new leaks
- ☐ All toilets: Flush, verify proper operation, check for leaks
- ☐ Water heater: Check for leaks, verify operation
- ☐ All outlets: Test sample outlets in each room
- ☐ Light fixtures: Verify all present and operational
- ☐ Smoke/CO detectors: Test each unit, verify none removed
Documentation and Evidence
Photography Requirements
- Wide shots: Photo each room from multiple angles showing overall condition
- Damage close-ups: Detailed photos of each item to be deducted from deposit
- Before/after comparison: Line up move-out photos with move-in photos for easy comparison
- Date stamping: Ensure all photos are dated (camera setting or photo properties)
- Appliance condition: Photo inside refrigerator, oven, dishwasher showing cleanliness
Written Documentation
- Complete checklist for every area of property
- Describe damage specifically: "8-inch hole in master bedroom wall" not just "wall damage"
- Reference move-in inspection: "Hole not present at move-in per inspection dated [date]"
- Note estimated repair costs or attach repair quotes
- Keep copy of completed inspection + photos in tenant file
Calculating Security Deposit Deductions
Allowable Deduction Categories
1. Unpaid Rent
- Any rent owed through last day of tenancy
- Prorated rent if tenant didn't move out by lease end date
2. Damage Repairs
- Only damage beyond normal wear and tear
- Deduct actual cost of repair or reasonable estimate
- If replacing item, deduct prorated cost accounting for age/useful life
3. Cleaning Costs
- Only cleaning necessary to return to move-in level of cleanliness
- Deduct actual cleaning costs (provide receipts)
- If self-cleaning, charge reasonable rate for time
Depreciation and Useful Life
Note: For items with defined useful life, you can only deduct the remaining value, not full replacement cost. This prevents landlords from profiting from security deposits.
For items with defined useful life, deduct only remaining value:
- Carpet: 5-7 year useful life; if carpet is 4 years old and damaged, tenant pays 1-3 years remaining
- Paint: 2-3 year useful life; prorate cost if paint is older
- Blinds: 3-5 year useful life
- Appliances: 10-15 year useful life
Depreciation Example: Tenant damages carpet that's 3 years old (5-year useful life). Carpet replacement costs $2,000. Tenant owes: $2,000 × (2 years remaining ÷ 5 years total) = $800
Itemized Statement Requirements
Each deduction must include:
- Description of damage or cleaning issue
- Reference to evidence (photos, receipts)
- Cost calculation (itemize labor, materials, depreciation)
- Receipt for completed work OR good-faith estimate for work to be done
Common Security Deposit Deductions
Legitimate Deductions
- Repairing holes in walls (beyond small nail holes)
- Carpet stain removal or replacement (if excessive)
- Broken window or screen replacement
- Deep cleaning of excessively dirty oven, refrigerator
- Repainting if tenant used unauthorized colors
- Replacing missing or broken blinds
- Professional carpet cleaning if pet odors or excessive staining
- Trash removal for items left behind
- Replacing damaged or missing appliance components
- Repairing broken tiles, fixtures, countertops
Problematic Deductions (Often Challenged)
- Routine carpet cleaning (unless excessively soiled)
- Repainting for normal wear after 2+ years
- Small nail holes from hanging pictures
- Normal appliance wear and tear
- General cleaning at same level as move-in
- Landscaping for normal seasonal changes
The 21-Day Rule and Compliance
Warning: The 21-day deadline is ABSOLUTE. Missing it can cost you the entire security deposit plus up to 2x the deposit amount in penalties, even if damages far exceed the deposit.
Timeline
- Day 0: Tenant returns keys, vacates property
- Day 1-2: Conduct move-out inspection
- Day 3-15: Obtain repair estimates, schedule work, complete minor repairs
- Day 16-19: Prepare itemized statement, compile receipts/estimates, calculate deductions
- Day 20: Mail check + itemized statement to tenant's forwarding address
- Day 21: Deadline - must be postmarked by midnight
What to Send
- Check for remaining security deposit (or explanation if retaining full amount)
- Itemized statement of all deductions with descriptions
- Copies of receipts for completed repairs
- Good-faith estimates for repairs to be completed
- Photos supporting damage claims (recommended)
Consequences of Missing Deadline
- May forfeit right to make ANY deductions
- Tenant can sue for return of full deposit
- Court may award tenant up to 2x deposit amount as penalty
- Landlord may have to pay tenant's attorney fees
Preventing and Handling Disputes
Prevention Strategies
- Thorough move-in documentation: Can't prove damage without baseline
- Clear lease terms: Specify cleaning and damage standards
- Pre-move-out inspection: Offer initial inspection 2 weeks early, allow tenant to remedy issues
- Reasonable deductions: Don't nickel-and-dime; focus on legitimate major items
- Clear communication: Explain deductions clearly with evidence
If Tenant Disputes Deductions
- Respond promptly and professionally
- Provide additional evidence (comparison photos, contractor quotes)
- Consider negotiation if dispute is over small amount
- Small claims court if unable to resolve (tenant can sue for up to $10,000 in California)
- Keep all documentation organized - you'll need it if challenged
Conclusion
A methodical move-out inspection, thorough documentation, and proper understanding of California's security deposit laws protect you from costly disputes and legal challenges. Remember the core principles:
- Compare directly to move-in inspection to identify tenant-caused damage
- Only deduct for damage beyond normal wear and tear
- Document extensively with photos and detailed descriptions
- Account for depreciation on items with useful life
- Meet the 21-day deadline without exception
- Be fair and reasonable in your assessment
Download our free move-out inspection checklist PDF to ensure you never miss critical details and comply with all California requirements when assessing property condition and calculating security deposit returns.
