Tenant Destroyed My Rental Property. Now What?

You walk into the unit after the tenant moves out and your stomach drops. Holes in the walls. Carpet destroyed. Kitchen cabinets ripped off the hinges. Cigarette burns on countertops. Maybe worse.

This happens more often than anyone talks about. Here is exactly what to do, how to recover costs, and how to prevent it next time.

Step One: Document Everything Before You Touch Anything

Do not start cleaning or repairing. Grab your phone and document every inch of damage first.

Take photos and video of every room, every wall, every surface. Get close-ups of specific damage. Include wide shots showing the overall condition. Record the date and time. If possible, bring a witness.

Compare against your move-in condition report. You did a move-in inspection with photos, right? If not, you just learned an expensive lesson. Move-in documentation is your only proof of what condition the unit was in before the tenant took possession.

Get Written Estimates

Get itemized repair estimates from contractors or suppliers. “Drywall repair: $800” is better than “general repairs: $3,000” when you are in front of a judge. Break it down by room and by type of damage.

Security Deposit Rules in New York (GOL 7-108)

New York General Obligations Law 7-108 limits security deposits to one month’s rent. That is it. No last month’s rent deposit, no pet deposit in addition to security. One month maximum.

After the tenant vacates, you have 14 days to either return the full deposit or provide an itemized statement of deductions with receipts or estimates. Miss that 14-day window and you may forfeit the right to keep any of the deposit, regardless of damage.

The deposit must be held in a New York bank in a trust account (for buildings with 6+ units). The tenant is entitled to know which bank holds the deposit.

What You Can Deduct

You can deduct for damage beyond normal wear and tear. The key phrase is “beyond normal.” Courts distinguish between damage caused by the tenant and deterioration from ordinary use.

Normal Wear and Tear vs. Tenant Damage

• Small nail holes from hanging pictures: normal wear. Fist-sized holes in drywall: damage.
• Faded paint after 3 years: normal wear. Crayon drawings covering the walls: damage.
• Worn carpet in high-traffic areas after 5 years: normal wear. Carpet soaked in pet urine: damage.
• Minor scuffs on hardwood floors: normal wear. Deep gouges and water damage from neglect: damage.
• Loose door handle from years of use: normal wear. Broken door kicked in: damage.

If the carpet was 8 years old when the tenant moved in, a judge is unlikely to award you the cost of brand new carpet even if the tenant damaged it. Depreciation matters. A 10-year-old carpet has little remaining value.

When the Damage Exceeds the Security Deposit

One month’s rent as security rarely covers serious damage. If your unit rents for $1,200 and the turnover costs are $6,000, you are $4,800 in the hole.

Small Claims Court

In Syracuse City Court, you can file a small claims case for up to $5,000. Filing fee is $15-$20. No attorney required. Bring your move-in photos, move-out photos, repair estimates, receipts, and the lease.

Judges in small claims want to see organized documentation. A folder with labeled photos, a spreadsheet of costs, and contractor estimates goes a long way. Showing up with a shoebox of receipts and a story does not.

Getting a Judgment vs. Collecting a Judgment

Here is the hard truth. Winning a judgment and collecting money are two completely different things. If the tenant has no assets, no steady job, and no bank account, your judgment is a piece of paper.

New York judgments are valid for 20 years and accrue 9% interest. You can garnish wages (up to 10% of gross) and place liens on property. But if the tenant disappears or works under the table, collection is nearly impossible.

This is why prevention through screening matters more than any legal remedy after the fact.

Getting the Unit Back on the Market Fast

Every day the unit sits empty costs you money. A $1,200/month unit loses $40 per day in vacancy.

7-Day Turnover

With a good contractor and a plan, most damaged units can be turned in 7-10 days:

• Day 1-2: Debris removal, deep clean, assess scope
• Day 3-5: Drywall repair, paint, flooring
• Day 6-7: Fixtures, final clean, photos for listing

Have your contractor relationships in place before you need them. Calling around for bids after the tenant leaves adds a week of vacancy.

14-Day Turnover (Heavy Damage)

If the damage includes plumbing, electrical, or structural issues, budget 14 days minimum. Get permits if required. Do not cut corners on code compliance to save time.

Prevention: How to Avoid This Next Time

Screen Aggressively

Credit below 600 with collections and judgments is a red flag. Call the prior landlord (not the current one). Ask specifically: “Did the tenant leave the unit in good condition?” and “Would you rent to them again?”

Quarterly Inspections

New York law allows landlord access for inspections with reasonable notice (typically 24 hours). Quarterly inspections catch problems early. A small hole in the wall in month 3 is a $50 fix. Left unchecked for 12 months, it becomes a $500 repair surrounded by other damage.

Document each inspection with photos. It builds a timeline if you ever need to go to court.

Move-In/Move-Out Checklists

Use a standardized checklist for every unit. Photograph every room, every appliance, every surface. Have the tenant sign and date the checklist at move-in. Do the same at move-out. This is your evidence.

The Real Cost of Property Damage

Security deposit kept: $1,200. Repair costs: $4,000-$8,000. Vacancy during repairs: $600-$1,600. Small claims filing and time: $200+. Lost rent if tenant was also delinquent: $2,400-$7,200.

A single destructive tenant can cost $8,000-$18,000. Across a portfolio in Oswego, Auburn, or Utica, one bad year can erase years of cash flow.

If you are tired of dealing with property damage, delinquent tenants, and turnover headaches, RenPro Property Management handles it all. Screening, inspections, maintenance, and collections. Call 315-400-2654.