As summer peaks in North County San Diego, move-outs are increasing and so are the security deposit disputes. At Raintree Property Management, we’ve seen a rise in calls from landlords who are surprised to find themselves on the wrong side of a tenant complaint or even in small claims court.
One recent example illustrates the risk clearly. A landlord in Encinitas had a great tenant who moved out at the end of their lease. The property was in decent shape. The landlord deducted $150 for carpet cleaning and $85 for wall scuff repair, then returned the remaining deposit. A few weeks later, he was served with court papers. The tenant filed a claim disputing the deductions. At the hearing, the judge asked: “Do you have move-in and move-out photos?” The landlord admitted he didn’t. The judge ruled that the landlord couldn’t prove the damages were beyond normal wear and tear and ordered a refund of the $235 that had been withheld. Time lost, court fees, stress it all could’ve been avoided with better documentation. This case isn’t unusual. The truth is: even experienced landlords make mistakes if their deposit process isn’t updated for today’s legal expectations. Here’s your mid-year audit to help identify and fix the three most common and costly mistakes landlords are still making in 2025.
Mistake #1: No Photo Documentation
California Civil Code §1950.5 requires landlords to provide an itemized statement of deductions within 21 days of move-out. While the law doesn’t explicitly require photos, they are critical in any dispute. Courts today expect visual documentation that clearly shows the condition of the unit before and after tenancy. Without it, your word as a landlord often isn’t enough.
To protect yourself, we recommend:
Blurry photos or images stored only on your phone won't cut it if you're standing in front of a judge. Set a standard process and stick to it.
Mistake #2: Skipping the Pre-Move-Out Walkthrough
One of the most overlooked legal requirements is the pre-move-out inspection. California law says that if a tenant requests it, landlords must conduct a walkthrough no more than two weeks before the end of the lease. You must provide at least 48 hours’ written notice and give the tenant a list of potential deductions they can correct before move-out. Failing to offer this walkthrough could render some or all of your deductions invalid if challenged.
Here’s how to stay compliant:
This step can feel unnecessary especially if you think the tenant will leave the place spotless but it’s required, and it gives you a chance to reduce disputes before they happen.
Mistake #3: Vague or Incomplete Itemizations
Many landlords use generic itemizations like:
That approach worked 10 years ago. Not anymore. In 2025, tenants are better informed, and judges are less lenient. Your deposit itemization must be specific, detailed, and supported by receipts or estimates. Best practices include:
Also, make sure to match your charges to the lease terms. If your lease doesn’t specify what condition the unit must be left in (e.g., “professionally cleaned”), you may be on thin ice.
What We Do at Raintree and How You Can Replicate It
At Raintree Property Management, we’ve developed a repeatable, dispute-reducing system that has helped us avoid court altogether and it’s something self-managing landlords can replicate.
We take 100+ photos at move-in, covering the full condition of the unit. These are time-stamped and stored permanently in our system.
Every tenant is offered a pre-move-out inspection. We use a standardized checklist and send a written report identifying any issues they can fix.
Our deposit deductions include receipts, estimates, lease clause references, and photo evidence. Nothing is vague.
Here’s the game-changer, when we return the tenant’s deposit, we include a Deposit Dispute Form. If they disagree with any charge, they have an opportunity to submit documentation photos, receipts, or a written explanation. Why does this matter? Because it’s the same documentation they would submit in small claims court.
Instead of spending hours preparing for court and risking a public complaint, we resolve it privately within a few days.
If the tenant shows strong evidence that a deduction was invalid or excessive, we correct it and issue a refund. But if they have no proof, the charge stands. This gives tenants a fair voice and protects the owner from unnecessary disputes.
Why This Process Works
We believe good documentation and transparent communication prevent conflict.
Our system:
Even if you're managing on your own, you can create a similar structure. Start with a checklist. Automate your photo storage. Pre-fill a dispute form. These small changes will protect your time and your bottom line.
Mid-Year Action Steps for Landlords
As we enter the second half of 2025, take a few minutes to audit your own process:
✅ Are you taking move-in and move-out photos?
✅ Are you offering pre-move-out walkthroughs with proper notice?
✅ Are your deposit itemizations specific, legal, and supported by evidence?
✅ Do you have a process for handling tenant disputes outside of court?
If you answered "no" to any of these, now is the time to fix it. Summer is peak move-out season and a few proactive steps can save you thousands.
Need Help? Let’s Talk.
At Raintree, we manage single-family homes and condos across North County San Diego. Our systems are designed to reduce disputes, improve tenant satisfaction, and keep owners fully compliant with California law. Whether you’re reviewing your lease, dealing with a recent move-out, or just want someone else to handle the hassle, we’re here to help.
✅ Click here to get a free rental analysis and see how your property compares.
✅ Or contact us directly we’ll walk you through the exact deposit process we use that’s helped us stay out of court.
Let’s protect your investment and your peace of mind.