5 Ways to Improve Your Tenants’ Move-Out Day

Another year goes by and before you know it, your tenants’ move-out day is upon you! As you walk the freshly vacated apartments, it’s normal to find small things that need to be fixed before the space is ready for someone new. Maybe you’ll need to replace the blinds, clean the carpet, or give the unit a fresh coat of paint. For the most part, everything typically goes smoothly — until you find that one.

We’ve all been there: You’re standing in the doorway of a recently vacated rental property, shaking your head and wondering how anyone could leave their former home in such condition. Your feet meet carpet torn up by pets, while your gaze turns to holes in the wall and dirty surfaces everywhere. As you take stock of what needs to be done, you realize, “I’m never going to get the previous tenant to pay for these damages.”

However, not all hope is lost! While it may be tricky to track down a previous tenant and get them to pay for damages without a fight, take this experience as a lesson learned. Prevention is key, and there’s a lot you can do before the damage is done to protect yourself. 

Here are 5 tried and true ways you can make the move-out process as smooth as possible for yourself and for your tenants.

The foundation of protecting your real estate investment lies in the lease agreement. The terms of the lease must clearly outline the tenant's responsibilities regarding property upkeep, cleaning, and any potential move-out charges. The more detailed the rental agreement, the easier it will be to justify charges when the tenant vacates. If your lease does not state any pricing for move-out charges, consider adding that to your resident handbook so your residents have access to that information well before their move-out date comes.

It’s expected that there will be work needed when a tenant moves out of a rental, but the property shouldn’t have any trash or a tenant’s personal property left behind, nor should it have any significant repairs needed. Most people will be good tenants who pay rent on time and leave the rental in good condition. They may even not realize they forgot something or created damage in the unit. This could be cause for a disagreement with your move-out charges, which can be cleared up with some quick communication. In other cases, there will be more conflict. For example, say you find damage under the sink from a leak. You check the form they filled out on their move-in date and do not find this damage noted. You check your maintenance request history and find the resident failed to report the leak, so you charge them for the damage. The tenant then disputes the charge since it was from a leak, and do not feel they should be held liable. They may even take this issue all the way up to small claims court. In these situations, we recommend you seek professional legal advice.

Disputes should always be in writing, and should include any evidence the tenant has, including photos, past communications, and maintenance requests.

Regular inspections throughout the lease term can help catch issues early and remind renters of their obligations. It may be beneficial to do a walkthrough a month or two prior to move-out day, where you can document any obvious charges that will be incurred such as blinds or carpet replacement. Document any damages or areas of concern and communicate these with the tenant prior to them moving out. That way, they’ll know that their final account statement will have those charges and they will be prepared to pay them right away. Addressing issues as they arise via written notices can reduce the likelihood of significant problems at move out, ultimately minimizing disputes over charges and lease violations.

Provide tenants with a detailed move-out checklist well in advance of their departure date. This checklist should include everything they need to do to avoid charges, such as cleaning specific areas, removing all personal belongings, and addressing any minor repairs (Think: small areas that need wall spackling or maintenance requests that need to be entered). This is also a great spot to add what repairs and replacements cost. For example, if you are charging each resident $25 per bag should they leave any trash or personal items behind, make that clear in your move-out guide. This guide can be emailed to residents, but having it linked to your website is another great way to ensure tenants have access to this information should they need it.

Once a tenant picks up keys and sees their new apartment for the first time, it’s important that they document its condition. If you are turning several hundred new leases in a short time frame, it’s almost guaranteed you are going to miss something. Having the tenant sign off on a report to acknowledge the properties initial state gives you a benchmark on what the tenant should truly be charged for come move out time vs. what was already there from previous residents.

Move-out charges, whether big or small, can come as a shock to the previous tenant. They may think that the apartment was left in great condition and not be on the lookout for any move-out charges. If you want to make sure you get your payments, it’s important that you use multiple touchpoints when communicating move-out charges with previous residents. Rotating between email, first class mail, phone calls, and text messages for several months after move-out will help you ensure that no prior tenant can come back and say that they were never made aware of the charges posted to their account.

You’ll also want to make sure you keep diligent notes on each account, especially if you are accepting payment plans or have any disputes. Many move-out statements will go to collections if they remain unpaid for an extended period. If that is the case with your property, including that in your final communications can help motivate your residents to pay off their outstanding balances.

Move-out day can bring its fair share of surprises, but with the right preparation and strategies in place, those surprises don’t have to turn into setbacks. By establishing clear expectations through your lease agreement and regular communication, you can minimize the chances of unexpected damages and disputes.

Even when faced with the worst-case scenario — a unit left in complete disarray — having a structured approach to documentation and communication allows you to effectively manage and recover costs. It’s not just about charging for repairs; it’s about maintaining the integrity of your property, ensuring a seamless transition for new tenants. With these practices in place, you can handle move-out charges with confidence.