--- title: Security Deposits & Damage Charges in Corporate Housing | Staylio url: https://staylio.co/blog/security-deposits-and-damage-charges/ description: How corporate housing operators handle security deposits and damage: who pays, inspections with photos, wear and tear vs damage, itemized deductions and deadlines. updated: 2026-10-16 --- # Security Deposits and Damage Charges in Corporate Housing How corporate housing operators handle security deposits and damage: who pays, inspections with photos, wear and tear vs damage, itemized deductions and deadlines. By **Staylio** · Updated **October 16, 2026** · **3** min read · Operations In short Fair damage charges rest on evidence. Inspect and photograph every unit at move-in and move-out, separate normal wear and tear from damage, price repairs honestly, and send an itemized statement with photos within the deadline your state sets. Decide in your agreements whether the resident, the paying company or both are responsible, because in corporate housing the person who caused the damage is often not the one paying the bill. Not legal advice Security deposit rules (how much you may hold, where, and how fast you must return it) are set by state and sometimes city law, and they may apply differently to furnished or short stays. Check yours with a local attorney. ## Who pays in corporate housing In a regular apartment, the tenant pays the deposit and the damage. In corporate housing there are usually two candidates: - **The resident**, who caused the damage. - **The company**, which booked the stay and may have agreed to cover damage. Some operators collect deposits from residents. Others waive deposits for established corporate clients and invoice the client for damage instead. Either way, your [client agreement](https://staylio.co/blog/corporate-housing-lease-agreement/) should say who is liable, up to what amount, and how disputes are handled. ## Evidence first You cannot fairly charge for damage you cannot show. Two inspections make the record: - **Move-in**: photos of every room, close-ups of anything already worn, the furniture inventory checked off, saved and dated. - **Move-out**: the same rooms, the same angles, compared with the move-in photos, plus the inventory checked again. Ask residents to report anything they find in the first 48 hours, and add it to the record. It protects them and you. ## Wear and tear vs damage | Normal wear and tear | Damage | | --- | --- | | Light scuffs on walls from furniture | Holes, gouges or marks needing repair and repaint | | Carpet worn in walkways | Stains, burns or pet damage | | Small nail holes from hanging pictures | Large holes or broken drywall | | Faded curtains or blinds from sun | Torn or broken blinds | | Loose door handles from use | Broken doors, locks or windows | | Light wear on sofa fabric | Tears, burns or heavy stains | | Dishes chipped over time | Missing kitchen items or broken appliances | The longer the stay, the more wear is normal. Charging for ordinary wear erodes trust with corporate clients faster than almost anything else. ## Pricing the damage - Charge the reasonable cost to repair or replace, not the price of brand-new for an old item. - Use real invoices from your vendors where you can, and attach them. - Keep labor and materials separate on the statement. - If an item was near the end of its life, charge a share of its value, not the whole. ## The itemized statement Send it within your state's deadline, with: 1. The deposit amount held 2. Each deduction, with a short description and the cost 3. Photos from move-in and move-out for each item 4. The balance refunded, or the amount still owed and how to pay it If the company is paying, send it to the contact named in your client agreement, with the resident's name and dates. ## Pet deposits and fees Pets are common in corporate and insurance stays. Most operators charge a pet fee (not refundable), a pet deposit (refundable), or both, and set out the rules in a pet addendum. Check any state limits on deposits and fees. ## Keep it in one record Damage handled across phone photos, emails and a spreadsheet is hard to defend. In Staylio, [inspections are documented with before and after photos](https://staylio.co/platform/maintenance/), severity and who is liable, and [deposit refunds post to the ledger](https://staylio.co/platform/vendors/) along with the deductions. ## Frequently asked questions ### What is normal wear and tear in a furnished rental? The gradual wear that comes from ordinary living: light scuffs, worn carpet in walkways, small nail holes and faded fabrics. Damage is harm beyond that, such as holes, burns, stains, broken items or missing inventory. ### Can a company be charged for damage caused by its employee? Yes, if your agreement with the company says so. Many corporate housing operators make the paying company responsible for damage and unpaid charges, which is why the client agreement matters. ### How long do I have to return a security deposit? It depends on your state. Many states set a deadline of a few weeks after move-out and require an itemized statement of deductions. Check your state's law. On this page 1. Who pays in corporate housing 2. Evidence first 3. Wear and tear vs damage 4. Pricing the damage 5. The itemized statement 6. Pet deposits and fees 7. Keep it in one record 8. Frequently asked questions Run your corporate housing business from one system. Bookings, residents, furniture, billing and the books. Beta opens January 1, 2027. [Join the beta](https://staylio.co/beta/) Keep reading Operations ### The Corporate Housing Move-In and Move-Out Checklist A move-in and move-out checklist for corporate housing operators: unit readiness, paperwork, arrival, the first 48 hours, notice, inspection, deposit and turn. 3 min read Operations ### Corporate Housing Lease Agreements: What to Include What a corporate housing lease should cover: parties, term and extensions, notice, rent and proration, deposits, pets, access, damage and e-signatures. 4 min read Operations ### Furniture Setup and Teardown: Running Logistics for Furnished Rentals How corporate housing operators run furniture: buy or rent, standard packages, inventory, delivery scheduling, setup and teardown crews, photos and damage. 3 min read Beta launching January 1, 2027 ## Run your whole portfolio from one screen. The Staylio beta opens to corporate housing operators on January 1, 2027. Get on the list, or see it first on a demo. [Join the beta](https://staylio.co/beta/) [Request a demo](https://staylio.co/demo/) Beta launches January 1, 2027