Tenant Move-Out
The tenant move-out process should be a simple and easy process. Both landlord and tenant want the move-out to be as trouble-free as possible. With some preparation and planning prior to lease expiration date, landlords and tenants can simplify the move-out process and help ease some of the stress of move.
For many tenants, the priority is the return of their security deposit. For many landlords, the priority is a tenant move-out with no surprises. Clear communication between the two parties can help accomplish those priorities.
Communication begins with the new tenant move-in orientation whereby the landlord reviews the lease agreement, rental policies and procedures, and tenant duties and responsibilities during the tenancy and at lease expiration. Including move-out procedures in the lease agreement can help reduce tenant uncertainty about what to do at move-out time and what to expect regarding the accounting and return of their security deposit.
The process of a tenant move-out should be a routine business function that transitions the rental unit back to the landlord. With so many details involved in the transition, what can a landlord do to make things go more smoothly during the tenant move out? A priority task in property management is having a written rental policy and detailed procedures for tenant move-outs including timelines for notices, inspections, unit possession, and accounting and return of security deposits. With a plan in place, there is greater control over the process. The plan provides a consistent process that ensures all required steps are taken in proper order and are legally compliant. This creates a faster, smoother process allowing the tenant to move on and the landlord to fill his vacancy.
A move-in/move-out checklist and inspection conducted by the landlord and tenant can help the moving process go more smoothly whether the tenant is moving in or the tenant is moving out. The documented move-in inspection report is the basis for the move-out inspection and determination whether the rental unit was well maintained during tenancy per tenant obligations under the lease. Some states mandate the checklist and/or inspection.
To minimize potential problems at the lease expiration date, a landlord should give written notice to the tenant prior to the lease expiration date that the tenant’s lease will be expiring soon and remind the tenant that there are certain tenant duties and responsibilities required by the lease agreement regarding move-out. Generally the notice of lease expiration is sent approximately two months prior to lease expiration date to allow the tenant time to evaluate his situation and provide adequate notice to the landlord of the tenant’s intent.
A landlord should always require in the lease agreement that the tenant to provide written notice of the intent to vacate the premises on a specified date. A landlord will need to conduct due diligence to determine the legal notice period per state landlord-tenant statutes and federal law for the applicable circumstances. In many states, a tenant is required to give the landlord at least 30 days’ notice of the tenant’s intent to move.
Once a landlord receives the tenant’s written notice of intent to move, the landlord should sent a confirmation move-out letter to the tenant.
Move-Out Letter
The landlord‘s move-out letter should detail what the tenant must do when his lease expires in order to meet the terms of the lease. These move-in procedures must have been stated in the lease agreement and should have been discussed with the tenant when the landlord conducted new tenant orientation.
A good move-out letter explains the process of closing out the tenancy and what is expected of the tenant. The letter should include the following issues, all of which should be in the lease agreement:
- A reminder that the lease agreement gave the landlord and the landlord’s agents the right to show the unit to prospective tenants or to schedule contractor work upon reasonable notice per statute.
- A statement of the landlord’s expectations that the unit will be cleaned and left in the same condition as the tenant found upon moving in.
- A summary discussion of the move-out inspection procedures. This should include a reminder that all personal possessions must be removed from the premises prior to inspection.
- An instruction that the tenant must call the landlord at a specified time period before the lease termination date or move-out inspection date (whichever is earlier) to schedule an appointment for the final walk-through inspection.
- A statement that the inspection must be performed on or before the termination date and that the tenant must return possession of the premises including return of keys, garage door openers, gate keys, and pool pass, as appropriate to the rental unit.
- A reminder that the security deposit cannot be utilized for last month’s rent, including penalties for doing so.
- A discussion regarding the deposits that were collected and the deductions that can be legally taken.
- An explanation of how the security deposit refund will be handled including reference to the applicable state law for accounting and return of the deposit.
- A requirement that the tenant provide a forwarding address and contact information for future communications and mailing of the check for the portion of the security deposit being returned and an accounting of any amount not being returned.
An itemized list can be prepared to provide instructions to tenants on how to meet the landlord’s cleaning standards and what items on the move-in checklist are the items of concern at move-out. A move-out checklist cannot, in general, be more inclusive than was the move-in checklist.
Since the tenants may not be able to locate their copy of the move-in checklist that was completed at the time of the initial inspection, it is advisable to attach a copy of the signed checklist to the move-out letter. The landlord should also remind the tenant to refer to their lease agreement if there are any questions regarding move-out duties and responsibilities.
The lease agreement should have prohibited attaching items to walls, ceilings, or floors without written permission from the landlord. This would include such things as window coverings, bookcases, or towel bars. As part of the lease terms and conditions, tenants should have been made aware that they are responsible for the costs of repairs following removal of the items if they attached such items without landlord permission and the landlord chooses to remove them.
The letter should also remind the tenant that electricity, gas, and water must be left on until the final inspection has been conducted. All utilities in the tenant’s name should be scheduled for turn-off by the date of termination. The landlord should instruct the tenant of any climate and seasonal conditions that warrant special requirements for utility shut-off, such as cold weather water shut-off and draining of pipes and fixtures.
Move-Out Inspection and Checklist
Neglecting to inspect and document the condition of the rental unit before the tenant moves in often leads to disputes or misunderstandings over security deposits after the tenant has moved out. Consequently, move-in /move-out checklist s are required by law in many states. Failure to follow the rules can have important implications regarding the landlord’s right to withhold any part of the security deposit. There is no set format for inspection checklists except what might be specified in the laws of some states. Formats used by landlords vary from a single page to multi-page documents having a separate page that covers each room or other area in detail.
Landlords should require that the final inspection take place after the tenant has removed all personal possessions and the premises have been cleaned to the level of cleanliness that the tenant intends. This will increase the likelihood of positive identification of any damage to the unit including that which might otherwise be hidden behind furniture and damage caused by carelessness during the removal of furniture.