How Does a Tenant Use Repair and Deduct?

Every landlord must make major repairs to their rental units. If they don’t, a tenant can repair the issue and deduct the cost from the monthly rent. But this is not an automatic right. Anyone considering “repair and deduct” should first consult state law and local ordinances, or they may face eviction proceedings for nonpayment of rent.

This article explains the sources of the repair-and-deduct remedy and how to use it. For targeted legal advice, contact a landlord-attorney near you. They can explain how your local laws and lease terms apply to your situation and ensure you use repair and deduct correctly.

Sources of Repair and Deduct

A tenant can only use repair and deduct when the landlord has a legal duty to repair major defects. There are two sources of this duty. The first is the lease or rental agreement. The second is under the implied warranty of habitability.

Lease or Rental Agreement

The lease or rental agreement should contain a clause outlining the landlord’s responsibility for necessary repairs. Typical landlord repairs include the following:

• Broken locks
• Hot water
• Running water
• Smoke detectors
• Broken heater
• Structural damage

Landlords are also responsible for maintaining common areas of the rental property, such as stairways, railings, lobby, and laundry facilities.

Tenants are often responsible for minor repairs, such as changing a lightbulb or removing lint from a dryer lint tray.

Implied Warranty of Habitability

Every rental unit comes with an implied warranty of habitability. This warranty is often based on local housing or building codes designed to ensure the rental unit is healthy and safe. Building codes outline health and safety standards for rental properties.

Consider, for example, pest or rodent infestation. An infestation means the unit is unhealthy and unsafe for human life. The landlord must hire an exterminator to meet the relevant code.

Using Repair and Deduct

Once you are sure the landlord must repair a material defect, inform the landlord of the repair. Check your lease. Most landlords specify how renters should report defects. Moreover, in many states, tenants must notify their landlord of the defect before they can withhold rent.

Repair and deduct rules and processes vary by state. An attorney near you can guide you through the steps and help ensure you don’t accidentally withhold rent in a way that leads to eviction. Find local legal help.

Provide Notice

To avoid any confusion or delay, consider doing the following:

• Send your landlord written notice of needed repairs.
• Send your repair request via certified mail so that you have proof of delivery.
• Give the landlord a reasonable amount of time to make the repairs.

What is reasonable depends on the defect, but it should not be more than 30 days.

Escrow Account

If your landlord fails to timely repair the defects, you can explore other options, like “repair and deduct.” First, check state and local laws to understand your rights and obligations if you decide to do the repairs. Some states, like Maryland, have strict requirements for using repair and deduct. Failure to follow these requirements could result in an eviction for nonpayment of rent.

In Maryland, if a landlord does not fix defects within 30 days of notice, the tenant may ask the court to open an escrow account. The court holds a hearing, and if it agrees with the tenant, it will establish an escrow account for the rent. The tenant then deposits the next month’s rent into this account until the landlord makes the repairs.

In other states, after giving notice and a reasonable time to repair, the tenant may arrange the repair and deduct the cost from the rent.

Considering Repair and Deduct? Get Legal Help First

Living with a broken heater or a pest infestation can jeopardize a tenant’s health. If your landlord refuses to make necessary repairs, speak to a landlord-tenant attorney first for next steps. They can help you navigate landlord-tenant laws and give you sound legal advice. 

FindLaw’s directory of landlord-tenant lawyers can connect you with qualified legal help near you. Because state and local laws are relevant, your attorney should be licensed in the state where you live. Enter your city or ZIP code for a list of legal professionals in your area. Your search results will also show important details about prospective attorneys, like ratings, areas of practice, and whether they offer free consultations.