The single most common deposit dispute comes down to one distinction: normal wear and tear versus actual damage. By law in nearly every state, a landlord may deduct for the second but not the first — yet move-out statements routinely blur the two.
Normal wear and tear is the gradual decline that happens just from living somewhere: faded or lightly scuffed paint, carpet worn along walking paths, small nail holes from hanging pictures, loose hinges, minor scuffs on floors. None of it is chargeable, because it is the expected result of ordinary use over time.
Damage is different in kind, not just degree: a cigarette burn or large stain in the carpet, a hole punched in a wall, a cracked window, a missing or broken fixture, pet destruction. Those go beyond ordinary use and a landlord can fairly deduct the reasonable cost to repair them — not to upgrade.
Two habits protect you. First, take timestamped photos at move-in and move-out so you can show the before-and-after. Second, if a deduction looks like wear and tear dressed up as damage, dispute it in writing and cite your state's deposit statute. Look up your state's deposit rules and generate a demand letter below.
Look up the rule for your state.
Updated July 2026