STEPS TO ENSURE A SMOOTH MOVE OUT PROCESS
It's time you or your tenants have decided to move on. We find this can be a particularly stressful time for the owner and tenant. But it doesn't have to be!
The tenant has located or is actively seeking a new residence. All the while making sure they leave the property in the condition they received it in. As all tenants want their deposits returned in full. On the other- hand, the owner hopes to receive the property with minimal repairs, so it is not sitting vacant for too long. The following steps can be taken to ensure a smooth move out:
- Having the Proper Documentation
- Determine if the owner or tenant is responsible for the move out the repair cost
- Have a good knowledge of what normal wear and tear is
- Have a good understanding of what is tenant damage is
- Steps a tenant can take to ensure they receive their security deposit
HAVING PROPER DOCUMENTATION
Keeping proper documentation organized is essential for an easy transition. Some will argue that move-outs can be the most challenging part of owning a rental, as it can seem like a ton of work. When determining owner vs. tenant charges, you will need to prove that the damage was there before the tenant or wasn't. It is advised to keep documentation on the following items:
- The condition of the unit before the tenant
- The condition of the unit through their tenancy
- Record of the tenants move in checklist/photos
- Copy of the lease agreement
- Record of communications between landlord and tenant
- Record of work orders/work completed at the property
- An entire move out inspection with photos
This brings us to the most critical questions of a move-out, WHO is responsible for the move out repairs?
DETERMINING WHO IS RESPONSIBLE FOR REPAIR
Determining what an owner repair verse tenant repair is another part of the move-out process. You will need to understand the difference between normal wear and tear vs. tenant damage as it can help steer owners away from running into a tenant dispute and ensure owners receive reasonable compensation for tenant damages. Normal wear and tear of the property is the owner's responsibility, and any tenant damage/repairs would be the tenant's responsibility and could be deducted from the security deposit return.
What Is Normal Wear and Tear?
Ordinary wear and tear is defined as "Deterioration which occurs based upon the use in which the rental home or apartment is intended; without negligence, carelessness, abuse, or accident at the premises or contents by the tenants, guests or occupants of the household."
In other words, normal wear and tear are considered to be the natural aging process of the home. Normal wear and tear repair costs should never be withheld from the security deposit, as it is something that happens through the continued use of the property. In return, normal wear and tear repairs are the owner's responsibility.
Examples:
- Peeling or cracking paint
- Rusty shower rod
- Sun-damaged blinds
- Small scuff marks
What is NOT Normal Wear and Tear/ Tenant Damage?
It's important to know that a landlord can reserve the right to use the tenant's security deposit and or a portion of the deposit to cover any charges related to cleaning, repair of any tenant damages, unpaid rent, unpaid utilities, late fees, the replacement cost of owner's personal property that is available for tenant use and attached to the lease and is missing or damaged. There are a few categories tenant repairs can fall under Negligence, Failure to Warn, Abuse/Misuse, and Accident.
- Negligence: failure to take proper care of doing something.
- Example: The tenant sets their BBQ grill next to the railing on a covered porch, and it burns the railing. The tenant failed to take the proper precautions the property was damaged, and they are responsible for the repair.
- Failure to Warn: Tenants are held responsible for notifying the landlord of repairs that could potentially cause further damage to the property.
- Example: There is a leak under the kitchen sink, and the tenant does not report the leak, which causes further damage and mold issue. The tenant can be held liable for the damages caused by the leak because they failed to report the leak.
- Abuse/Misuse: Tenant knowingly mistreats the property.
- Example: The tenant loses their keys and tries to break into the home by forcing the door or window and causing one or both to break. Instead of calling a locksmith, the tenant knowingly causes damage. In return, they are held responsible for the repair costs.
- Accident: An unfortunate incident that happens unexpectedly and or unintentionally, resulting in damage to the property.
- Example: The tenant is changing batteries in the smoke alarm and, in doing so, drops the smoke alarm, and it breaks. Even though it was an accident, the tenant broke the smoke alarm, so they are held responsible for replacing or covering the cost for the repair.
OTHER FACTORS TO CONSIDER
A couple of remaining factors to consider while determining who is responsible for the repair cost are- The Extent of Damage, Length of Residence, How Old are the Characteristics of the Home.
- Extent of Damage: How much damage is there?
- Example: The tenant had one nail hole versus something hitting the wall and damaging the drywall. One could argue that one nail hole could be considered normal wear and tear—however, a hole in the drywall would be the tenant's responsibility.
- Length of Residence: How long did the tenant live in the home?
- Example: A tenant has lived in residence for ten years. The carpet was new at the time of their move-in. It is assumed there would be natural wear and tear from a ten-year occupancy verse a tenant who has only occupied the home for a few months that left the carpet stained and ripped. Carpets, may in particular, begin to show wear after a few years, becoming stained and frayed over time. Even with regular cleaning, a typical lifespan of carpet in a rental home is about five to seven years.
- How Old are the Characteristics of the Home & Construction of building: How old is the flooring, home, and was the damage caused by the construction of the house.
- Example: An older home might deteriorate and have more wear and tear faster than a newer home.
STEPS A TENANT SHOULD TAKE PRIOR TO MOVING
Before moving out of a property, a tenant should always:
- Double Check Lease Agreement: There are usually specific items and instructions in the lease agreement on what is required of a tenant when they are planning to move out.
Example:
- Carpet Cleaning
- Reach out to the Landlord: See if there is an option to set up a Pre-Move-Out Inspection and get a list of Cleaning suggestions.
This will allow the tenant to correct any tenant damage that needs to be repaired before moving out.
If all else fails, it would find it wise to call the landlord and ask questions on what the move-out requirements are to ensure a smooth move-out and return of the security deposit!
