All short-term/seasonal rental guests are required to purchase Damage Protection Insurance in addition to providing a security deposit. If something is damaged at your property, our first course of action is to file a claim with the insurance company for the cost of replacement, repair, or cleaning. The same estimated amount would be retained from the renter’s security deposit until the insurance claim is paid. Please be aware that California law specifically allows us to use a security deposit for four purposes:
- For unpaid rent;
- For cleaning the rental unit when the tenant moves out, but only to make the unit as clean as it was when the tenant first moved in;
- For repair of damages, other than normal wear and tear, caused by the tenant or the tenant’s guests; and
- If the lease or rental agreement allows it, for the cost of restoring or replacing furniture, furnishings, or other items of personal property (including keys), other than because of normal wear and tear.
We can withhold from the security deposit only those amounts that are reasonably necessary for these purposes. The security deposit cannot be used for repairing defects that existed at the property before a tenant moved in, for conditions caused by normal wear and tear during the tenancy or previous tenancies, or for cleaning a rental unit that is as clean as it was when a tenant moved in. Any items that are fragile, highly valuable, invaluable, or cannot be easily replaced should be removed from the property prior to the initial rental period. These items may include family heirlooms, expensive artwork, sculptures, prized personal belongings, anything that may have sentimental value etc. Although it is rare, there is always risk of damage to your personal belongings, and if we are unable to establish a cost to be deducted to a renters security deposit for said damage, then we will not be able to repair or replace the item.
