Damage Deposit Receipt Template

The receipt includes identifying information about the lessor and lessee and the goods or services rendered. It also breaks down the deposit paid and the terms of reimbursement.

Table of Contents

• How Do Damage Deposits Work?
• Common Deposits for Damage
• Damage vs. Wear and Tear
  • Table: Damage vs. Wear and Tear

How do Damage Deposits Work?

When a person or entity needs to rent goods or services, the provider can charge an upfront fee called a damage deposit (also known as a bond, bond deposit, and tenancy deposit). This deposit ensures the renter will take appropriate care of the goods while possessing them or provide a safe and healthy working environment for the service provider. Renters must return goods to the provider in equal or better condition than how they were received. If the renter keeps their side of the agreement, they will receive their deposit back in full when they return the goods, or the services have been rendered complete. Suppose any damage was done to the goods, or the service provider experienced any harm or property damage while rendering the services. In that case, the provider can retain the damage deposit to cover any costs incurred for repairs or medical bills.

Common Deposits For Damage

Here are some examples of goods and services that can require a damage deposit before use:

Goods

• Boats;
• Cars;
• Computers/laptops;
• Instruments;
• Property (apartment, commercial, condominium, dormitory, house, vacation rental, etc.);
• Machinery;
• Sports equipment;
• Trucks; and
• Tools.

Services

• Construction;
• Cosmetology;
• Event planning;
• Freelancing;
• Hotel accommodations;
• Landscaping;
• Plumbing; and
• Tutoring.

Damage vs. Wear and Tear

So what is the difference between actual damage and normal wear and tear? Damage is a result of abuse, carelessness, malice, or negligence. Normal wear and tear occurs naturally over time due to natural causes.

Table: Damage Vs. Wear and Tear

Item	Average Life Span of Item	Damage	Wear and Tear
Appliances	Varies	Broken appliances	Aged parts
Carpet	Five (5) years	Holes and stains	Gently worn patches
Countertops	Twenty (20) years	Burns, chips, and stains	Scratches and watermarks
Hardwood Floor	Twenty-five (25) years	Deep scratches and missing pieces	Fading from the sun and light surface scratches
Paint	Three (3) years	Marked-up paint, pet scratches, and unauthorized colors/wallpapers	Fading from the sun and slight scuffing
Sinks/Toilets/Tubs	Varies	Broken enamel and broken fixtures	Old fixtures that still work
Tile	Twenty-five (25) years	Broken, chipped, and missing tiles	Dirty grout
Walls	Lifetime of Structure	Damage from hanging things, holes, and pet scratches	Cracks caused by normal building settling and loose wallpaper
Windows/Window Coverings	Twenty (20) years	Broken glass/hardware and ripped screens	Lightly scratched glass and old or loose hardware