Security Deposit Shortfall Calculator

When damages exceed deposit, shortfall goes to collections. This calculator sizes the gap for collection planning.

Security deposit

Total damages claimed

Shortfall

$2,700

Deposit applied

$1,800

Shortfall as % of damages

60.00%

How the math works

Shortfall = damages − deposit. Goes to collections as unsecured receivable.

Collect via: letter first, agency second, small claims court third. Skip trace helps locate tenant post-vacate. Track carefully to avoid writeoffs.

How to Use

Enter move-in condition deposit.
Enter total move-out damages.
Read shortfall and collection target.

Frequently Asked Questions

Why track shortfall?

Shortfalls are receivables — worth pursuing via skip trace, collections, or small claims. Without tracking, they become bad debt and are written off.

Typical recovery?

15-35% of shortfall collected within 12 months via reasonable collections. More with aggressive legal (lawsuit + judgment + wage garnishment). Less without skip trace + collections infrastructure.

What is deposit used for?

Covers unpaid rent, cleaning, damages beyond wear-and-tear, and late fees. State law limits what LL can deduct. Document everything with photos and invoices.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.