The move-out process is a crucial step in the rental cycle, and a well-structured approach can help landlords avoid disputes and ensure a smooth transition.
How can property owners achieve that? This article covers the move-out inspection process and the tenant move-out checklist, helping you ensure that you don't miss a step.
1. Preparing for the Move-Out
The move-out process requires a hands-on approach from the landlord, and preparing in advance allows you to avoid errors.
Start by reviewing the lease agreement and scheduling the move-out inspection in advance. Then, provide proper notice indicating when the inspection will occur and the tenant's move-out date.
To let your tenant know what their responsibilities are, you can provide a tenant move-out checklist outlining what they need to address before they leave, such as payment for property damages, the security deposit return or deductions, settling utility bills, and more.
2. Conducting the Move-Out Inspection
The move-out inspection process is a critical step in which landlords thoroughly review the rental property, including rooms, exterior areas, and common spaces.
It's advisable to use a move-out checklist to document the condition of the property and identify potential damages. This will help you determine potential charges you can deduct from the tenant's security deposit for repair costs or replacements.
Do remember that during the inspection, the tenant must be present, and you must remain fair and impartial in the process.
Move-Out Checklist Sample:
Move-In | Move-Out | Repair Costs | |
Floor | |||
Walls | |||
Ceiling | |||
Doors | |||
Windows | |||
Screens | |||
Shades/Blinds | |||
Storage Units | |||
Light Fixtures | |||
Closets | |||
Appliances | |||
Outlets | |||
Switches | |||
Light Bulbs | |||
Total: | |||
Your move-out checklist should be customized to your rental property. If your property has unique amenities, such as in-unit laundry or a fireplace, you should also include them in the tenant move-out checklist.
Ordinary Wear and Tear vs. Property Damage
Understanding the line between normal wear and tenant-caused damage prevents potential disputes with your tenants. This is especially important since these costs could be deducted from the security deposit when they exceed normal wear and tear.
Ordinary wear and tear are typically damages brought by regular use. Signs of rental home deterioration include faded paint, worn flooring, and minor scuffs. What can be classified as tenant-caused damage is broken tiles, shattered windows, vandalism, and other significant damages.
Security Deposit Deductions
To avoid security deposit disputes, you must only deduct costs following the lease agreement and local laws. That means you can only charge for tenant-caused damage and unpaid rent. If there are no deductions to be made, return the full security deposit to the tenant.
If there are deductions to be made, make sure the tenant receives an itemized statement of all the deductions and return what's left of the deposit. For extra measure, you can also provide a copy of the move-out inspection form for comparison of findings and deductions.
3. Ensuring Everything is Cleaned and Working Properly
After the inspection, the tenant may have certain obligations to fulfill, such as repairing damage caused or replacing items like light fixtures or furnishings in the rental unit. This helps ensure that the rental property will be in tip-top shape for the next tenant.
Once repairs are made and everything is in working order, the tenant can vacate the premises and leave the keys to the rental unit. You can then start doing the needed work on the premises to prepare it for the next tenant.
To make things easier for you, you can create a separate move-out checklist exclusively for normal wear and tear. This way, you can make improvements for new tenants.
Tenant Move-Out FAQs
Can I skip the move-out checklist?
- You should not. It is a form landlords use to stay organized. When you discover damages after the tenant leaves, you might have to pay for repairs with your own money.
What should be included in the itemized list for the security deposit?
- It should state the date it was given, the tenant's name, the address of the rental unit, the deposit amount received, a list of damage caused, the amount deducted, cleaning expenses, the amount to be returned, and the signatures of both parties.
When should I give the security deposit back to my tenant?
- It should be returned within 30 days after their tenancy ends.
What do I do with the personal property that tenants leave behind?
- Notify the tenant about their belongings and the intention to dispose of them within a given timeframe. You can even add this step to your move-out checklist to avoid facing this problem after the tenant moves out.
What do I do when a dispute arises?
- You can discuss terms with your tenants and explain the costs they are responsible for based on the lease agreement. To prevent such issues, you can provide a copy of the move-out checklist and help the tenant understand why they are responsible for the listed costs, so you're on the same page.
What should I do when the tenant refuses to pay for damages?
- You can try to clearly communicate why they need to pay for the damages listed on the move-out checklist. If they still refuse, you can pursue legal action to compel them to comply.
When should I give the notice for inspections?
- You typically need to provide the notice 24 hours prior to the scheduled inspection. It would also be wise to include a move-out checklist before inspection to give them time to correct any issues.
Are move-out checklists similar to move-in checklists?
- Yes, in many ways. However, a move-out checklist does not include ordinary wear and tear, which you may choose to fix before another tenant moves in.
Hiring a Property Manager to Handle the Move-Out Process
Professional property management services can provide a more seamless transition for both landlords and tenants in the move-out process. At Precision Realty, we have our own move-out checklist to assess the condition of the property.
We understand that you might not be able to focus on other aspects of property management during this busy time. The best part is that we can help you with that as well!
Our company can help ensure your rental business runs smoothly by fulfilling landlord duties such as drafting leases, screening tenants, collecting rent payments, maintaining the property, and more.
Let us help you with your investment journey. Contact us now to learn more about the service we provide.
