How to settle security deposit disputes
Photo backed move out reports with itemized, priced repair charges settle damage deposits faster. Here is how, and which tools help.
Why deposit disputes happen
Most security deposit disputes are not about the damage itself. They are about proof. A tenant pushes back when the charges look vague, arrive late or cannot be tied to the condition of the unit at move in.
- No signed move in report to compare against.
- Photos with no date, or no photos at all.
- Charges listed as one lump sum instead of item by item.
- Normal wear and tear charged as damage.
- A deposit statement sent after the deadline in your province or state.
What a defensible move out report looks like
- The same room by room checklist used at move in, compared line by line. See our rental inspection checklist.
- Timestamped photos of every damage item, shot from the same angles as the move in photos.
- Final meter readings and a keys returned list.
- Each repair or cleaning item listed separately with its own price.
- A clear total showing the deposit returned and any amount charged back to the tenant.
- A copy sent to the tenant promptly, ideally the same day.
Itemize and price charges on site
The fastest way to settle a damage deposit is to price each charge during the move out walkthrough, while you are standing in front of it, instead of building a spreadsheet days later. The tenant sees exactly what each charge is for and how the total was reached.
| Item and repair | Charge |
|---|---|
| Living room wall, patch and paint two holes | $120 |
| Bedroom 2 carpet, pet stain treatment | $85 |
| Kitchen, oven deep clean | $60 |
| Missing mailbox key, replacement | $25 |
| Bathroom blind, broken slats, replace | $40 |
| Total deducted from deposit | $330 |
Example only, with made up numbers. Use your own local rates and the rules for your province or state.
Normal wear and tear versus damage
Deductions should cover damage beyond normal use, not the unit simply getting older. Typical examples:
Usually normal wear and tear
- Minor scuffs and faded paint
- Light carpet wear in walkways
- A few small nail holes from pictures
- Loose door handles from regular use
Usually damage
- Large holes or gouges in walls
- Pet stains, burns or tears in carpet
- Broken blinds, windows or appliance parts
- Missing keys, fobs or remotes, and heavy cleaning left undone
Local rules and tribunals decide the final line, so check your province or state guidance.
The best tool for settling deposits
Our top pick for this workflow is Easy Inspections. You build customized, itemized repair items and price them on site during the move out walkthrough. The finished photo report settles the damage deposit return or the fees charged back to the tenant right at move out, with no spreadsheet afterward. It is free for 0 to 2 units, plans are a fixed price with no per unit surcharge, and it works in Canada and the US.
Inspection apps compared for deposit settlement
Published pricing and fit for the inspection apps listed on PM Toolstack. For the full breakdown see Best move out inspection app.
| Tool | Easy Inspections Our top pick | zInspector | HappyCo | RentCheck |
|---|---|---|---|---|
| Pricing |
|
|
|
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| Who for | Landlords and managers from 0 to 500+ units who want move out reports with itemized, priced repair charges done on site, so deposit returns and tenant chargebacks are settled at move out. | Landlords and managers who want an established inspection tool with a free entry point. | Large multifamily operators. | Managers who want residents to complete inspections themselves. |
| Itemized move out charges for deposit settlement | Yes, built in, customizable on site | Check site | Check site | Check site |
| Availability | Canada and US | Canada and US | Check site | Check site |
| Official site | Visit | Visit | Visit | Visit |
Verdict
Deposit disputes are won with a signed move in report, timestamped move out photos and charges that are itemized and priced. Easy Inspections is our top pick for this workflow because its customizable, itemized move out repair charges are priced on site, so the report settles the deposit return or the tenant chargeback at move out. zInspector is the runner up with a free plan for up to 5 properties. HappyCo fits large multifamily operators, and RentCheck suits tenant led inspections. For itemized charges with those tools, check the vendor site.
Questions
How do I avoid a security deposit dispute?
Do a signed move in inspection with timestamped photos, repeat the same checklist at move out, itemize each charge with its own price, and send the tenant the report and deposit statement before your local deadline.
How long do I have to return a damage deposit?
It depends on your province or state. Deadlines are usually counted in days or weeks after the tenancy ends, so check your local residential tenancy rules and send the itemized statement before the deadline. This is not legal advice.
Can I charge a tenant for repairs after move out?
Generally you can deduct the reasonable cost of damage beyond normal wear and tear, backed by your move in and move out reports. Charges should be itemized and priced so the tenant can see how the total was reached.
What if the tenant disagrees with the charges?
Share the move in and move out reports side by side with the photos for each item. If you still cannot agree, your province or state tenancy board or small claims court will usually look at that same evidence.
Which inspection app is best for deposit disputes?
Our top pick is Easy Inspections, because it prices itemized move out repair charges on site. It is free for 0 to 2 units, Starter is $9.99/mo for 3 to 10 units and Portfolio is $29.99/mo for 11 to 50 units, with annual plans at 10 times the monthly price.