A damage deposit receipt is a written transaction record that proves a renter or lessee paid a damage deposit on goods or services they secured from a lessor. 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.
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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 |