Landlord withholds tenant's entire $1,850 security deposit over a worn carpet, then sends an invoice from a repair company he secretly owns: ‘I’m preparing a demand letter’

Author image for Cata Holmes
Cata Holmes • Writer
Jun 27, 2026 1:00 PM EDT

Can a landlord really charge you with an invoice from a company they own?

Honestly, this story looks like taken from the TV. We all know that having a good relationship with your landlord doesn't always seem to be that easy. It depends on many factors, but the main one is respect. Since there's a lot of money involved in that relationship is fundamental to be trustworthy and transparent. And all of that has to apply even if the contract had ended.

In this story, the thing that struck me was the amount of money he said he invested in fixing that carpet. A carpet that had been used for multiple years. How can someone pretend that those stains are new and not 100 years old? And the worst part: the address of the cleaning company, which matched his address perfectly. The landlord wants to steal money, if you ask me. I totally agree with the way that the OP is handling the situation. This sounds like a scam, and I'd certainly go with a legal response as well. I'd gather all the evidence that supported my stance and send him a demand letter. 

But, besides the legal fight that is starting to form, I think this could have been avoided if the end goal had been to have a clean carpet. I'm not sure about the landlord's intentions behind his act (trying to see him not only as the bad guy), but if he wanted to have that cleaned up, he could have certainly talked to her and found an arrangement that could have benefited both of them. 

Renting a property comes with all types of problems and unexpected situations. The only advice that I have for you is to try to be respectful and to take care of the place you're renting. Because, in the end, the homeowner is the landlord, but it's the tenant's home.

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  • A vacuum cleaner removes dust from a light-colored carpet in a clean living room.
    via Unsplash+ (via Karolina Grabowska)

    A vacuum cleaner removes dust from a light-colored carpet in a clean living room.

    Image is representative only and does not depict the actual subjects of the story.

  • I wish I were making this up. I moved out of my apartment last month after living there for three years, left it cleaner than it was when I moved in, and took timestamped photos of every room. The carpet had already been old and flattened when I got the place.
    via Sea_Resort6926
  • There were visible seams, faded areas near the windows, and a dark spot in the hallway that's clearly visible in my original move-in photos. The landlord even mentioned during the walkthrough that the carpet was "probably due soon."
    via Sea_Resort6926
  • Two weeks later I got an email saying my entire $1,850 security deposit was being withheld for "excessive carpet damage and full replacement." Attached was a one-page invoice for $2,430 from a company called Northside Property Restoration.
    via Sea_Resort6926
  • No itemized labor, no carpet brand, no square footage, just "remove and replace damaged flooring."
    via Sea_Resort6926
  • The amount seemed ridiculous, so I searched the company name. It has no website, no reviews, and the business address is the exact same address listed for my landlord's LLC.
    via Sea_Resort6926
  • I looked up the state business records and, surprise, the registered owner of Northside Property Restoration is my landlord. The company was formed eight months ago. I emailed him asking for photos of the damage, the age of the carpet, an itemized invoice, and proof that the work was actually completed.
    via Sea_Resort6926
  • He replied with three close-up pictures of normal worn carpet fibers and said the invoice was sufficient documentation. One photo includes the edge of the old hallway stain that was already there before I moved in. He also claimed the carpet was only four years old, but I contacted the previous tenant through an old package label I had found in the mailbox, and she said it was already installed when she moved in 12 years ago.
    via Sea_Resort6926
  • She even sent me pictures from her old rental listing, and yep, same carpet.
    via Sea_Resort6926
  • I sent him my move-in photos, the previous listing photos, and a screenshot of his ownership of the "repair company." His response was that using a related company is legal and that I'm trying to avoid responsibility.
    via Sea_Resort6926
  • He offered to return $300 if I sign a document agreeing that the remaining charges are valid and promising not to pursue the matter further. I haven't signed anything. I'm preparing a demand letter and gathering everything for small claims, but the sheer confidence of creating an invoice from your own company and presenting it as an independent repair bill is almost impressive.
    via Sea_Resort6926
  • Has anyone dealt with a landlord charging through their own business like this, and is there anything specific I should request before filing?
    via Sea_Resort6926
  • A vacuum cleaner removes dirt from a worn carpet with visible signs of everyday use.
    via Unsplash+ (via Cphotos)

    A vacuum cleaner removes dirt from a worn carpet with visible signs of everyday use.

    Image is representative only and does not depict the actual subjects of the story.

  • As soon as the OP posted the story, an army of Redditors appear to back her up and to insist she should continue with this matter in the legal field. Here are some of them.

  • buzywuzy This is the most obvious small claims case, especially given your evidence. Ask for bad faith and treble damages.
    via Sea_Resort6926
  • Key-Gazelle-3999 Do not sign anything and take him to court these landlord's is so d n greedy for money it don't make sense...I just sued my landlord in March and won my case.
    via Sea_Resort6926
  • PriestessKade Don't just take him to small claims, report him to your state's business oversight agency and leave online reviews.
    via Sea_Resort6926
  • LowkeyEntropy Contact an attorney and get this started. Id even ask if a preservation of records order pertaining to any communications with you and the previous tenant, particularly anything to do with the carpet could be issued.
    via Sea_Resort6926
  • Conch Vibes Landlord cannot charge you for things that are beyond their customary life expectancy. You can sue them if they do.
    via Sea_Resort6926
  • Flat_Pipe_4538 some states allow you to sue for 3x what LL did not return. check your laws. counter with return deposit, or you will sue for max damages, and with what you have, he will lose, and LL knows that. If he doesn't return deposit, sue his a.
    via Sea_Resort6926
  • Expert-Vast-3234 Sue him for sure. Maybe even consult with a lawyer to see if there is a way to gather with other tenants and form larger class action suit because it is likely he has been doing this to people for a long time, that is why he's so confident. He's probably been charging tenants "replacement costs" for that carpet for years and has never actually replaced it.
    via Sea_Resort6926
  • Bowman 74 Small claims court is possibly the ultimate destination. I'd also check to see your state laws around landlord tenant relationships and if they have a tenant support office or group that you can consult. They may be able to steer you best.
    via Sea_Resort6926
  • Woman relaxing on a white couch in a sunlit apartment overlooking the city.
    via Unsplash+ (via Devin Nelson)

    Woman relaxing on a white couch in a sunlit apartment overlooking the city.

    Image is representative only and does not depict the actual subjects of the story.

  • Curious_Promise_7813 Contact your state attorney general's office. Normal wear and tear are the excluded from security deposits in most states. NYS has an online form for this type of situation and one of the assistant attorney generals will request specifics from the LLC.
    via Sea_Resort6926
  • 18k_gold take him to court and sue him but wait for 60 days. On my State if he doesn't return it by then, he has to pay double. also 12 year old carpet, in most states you have to replace the carpet in 5 to 7 years. He can't charge you for this.
    via Sea_Resort6926

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