diff --git a/server/src/com/cloud/vm/UserVmManagerImpl.java b/server/src/com/cloud/vm/UserVmManagerImpl.java
index c9e66ff4353..ac529881b60 100755
--- a/server/src/com/cloud/vm/UserVmManagerImpl.java
+++ b/server/src/com/cloud/vm/UserVmManagerImpl.java
@@ -1081,8 +1081,6 @@ public class UserVmManagerImpl implements UserVmManager, UserVmService, Manager
 
         _haMgr.cancelDestroy(vm, vm.getHostId());
 
-        _accountMgr.incrementResourceCount(account.getId(), ResourceType.user_vm);
-
         try {
             if (!_itMgr.stateTransitTo(vm, VirtualMachine.Event.RecoveryRequested, null)) {
                 s_logger.debug("Unable to recover the vm because it is not in the correct state: " + vmId);
@@ -1117,6 +1115,9 @@ public class UserVmManagerImpl implements UserVmManager, UserVmService, Manager
         UsageEventVO usageEvent = new UsageEventVO(EventTypes.EVENT_VM_CREATE, vm.getAccountId(), vm.getDataCenterIdToDeployIn(), vm.getId(), vm.getHostName(), vm.getServiceOfferingId(), vm.getTemplateId(), vm
                 .getHypervisorType().toString());
         _usageEventDao.persist(usageEvent);
+
+        _accountMgr.incrementResourceCount(account.getId(), ResourceType.user_vm);
+
         txn.commit();
 
         return _vmDao.findById(vmId);
@@ -1642,6 +1643,8 @@ public class UserVmManagerImpl implements UserVmManager, UserVmService, Manager
                 _usageEventDao.persist(usageEvent);
                 String msg = "Failed to deploy Vm with Id: " + vmId;
                 _alertMgr.sendAlert(AlertManager.ALERT_TYPE_USERVM, vm.getDataCenterIdToDeployIn(), vm.getPodIdToDeployIn(), msg, msg);
+
+                _accountMgr.decrementResourceCount(vm.getAccountId(), ResourceType.user_vm);
             }
         }
     }
diff --git a/server/src/com/cloud/vm/VirtualMachineManagerImpl.java b/server/src/com/cloud/vm/VirtualMachineManagerImpl.java
index 4167b3a2cfe..5f796650b98 100755
--- a/server/src/com/cloud/vm/VirtualMachineManagerImpl.java
+++ b/server/src/com/cloud/vm/VirtualMachineManagerImpl.java
@@ -805,10 +805,6 @@ public class VirtualMachineManagerImpl implements VirtualMachineManager, Listene
             }
         } finally {
             if (startedVm == null) {
-                // decrement only for user VM's and newly created VM
-                if (vm.getType().equals(VirtualMachine.Type.User) && (vm.getLastHostId() == null)) {
-                    _accountMgr.decrementResourceCount(vm.getAccountId(), ResourceType.user_vm);
-                }
                 if (canRetry) {
                     try {
                         changeState(vm, Event.OperationFailed, null, work, Step.Done);