The Post-Lease Checklist (Lease Renewals, Move-Out, and Returning Deposits)

At the end of a lease term comes the moment when you need to say goodbye to your tenant.

Fortunately, whether they were the best tenants or the worst, it's the same process (though not necessarily the same amount of work).

Let's jump straight in and talk about a few things that should be done to prepare for the move-out.

Part I: Preparing for Move-Out

As a landlord, it's important to be well-prepared for when a tenant moves out.

This not only ensures a smooth transition for both parties but also protects your property and interests.

In this section, we'll go over the steps landlords should take before a tenant moves out, tips for ensuring a smooth transition, and best practices for handling security deposit returns.

Steps Landlords Should Take Before a Tenant Moves Out

Strangely enough, the move-out process actually begins before the tenant even moves out.

Below, we have provided a list of steps to take before the tenant moves out to ensure a smooth experience for both parties.

Send a Move-Out Reminder to the Tenant

Before a tenant moves out, it is important to send them a reminder of the upcoming move-out date.

This serves as a friendly reminder and allows the tenant to plan accordingly.

Review the Lease Agreement and Check for Any Move-Out Instructions

As the landlord, it is important to review the lease agreement and check for any move-out instructions.

This includes ensuring that the tenant has fulfilled all of their obligations, such as giving proper notice and paying any outstanding rent or fees.

Schedule a Final Walk-Through with the Tenant

A final walk-through with the tenant allows the landlord to assess the condition of the property and address any issues before the move-out.

This is also an opportunity for the tenant to address any concerns they may have regarding the security deposit return.

Gather Information for Security Deposit Return

Before a tenant moves out, the landlord should gather any necessary information for the security deposit return.

This includes any documentation of damages or repairs, as well as any receipts or invoices.

From here, the process can get a little rough, especially with tenants who are not cooperative.

To help, we have provided a list of our top tips for making sure all of this is a smooth transition.

Tips for Ensuring a Smooth Transition

Below are some of our top tips to make sure that your tenant moving out goes as smoothly as possible.

Communicate Clearly and Frequently with the Tenant

Clear and frequent communication with the tenant is key to ensuring a smooth move-out.

This includes addressing any concerns or issues in a timely manner and keeping the tenant informed of any necessary steps or deadlines.

Be Prepared for Any Contingencies

As a landlord, it is important to be prepared for any contingencies that may arise during the move-out process.

This includes having a plan in place for handling any disputes or issues that may arise, especially security deposit disputes.

Keep Records of All Communication and Documentation

It is important to keep records of all communication and documentation related to the move-out process.

This includes any correspondence with the tenant, documentation of damages or repairs, and receipts or invoices.

Consider A Lease Renewal

When tenants are coming up on the end of their contract, landlords consider lease renewals instead of a new lease agreement with a different tenant.

To do this, you would have to send a lease renewal notice, or lease renewal letter, with enough time for the tenant to respond. The required time depends on state and local landlord-tenant laws.

Then, the current lease agreement can be extended only if both the landlord and the tenant agree to the original lease agreement.

How to Handle Security Deposit Returns

One of the last things that need to be done in the move-out process is to handle the security deposit returns.

This can be an especially difficult thing to do, as tenants can get very protective of their deposits.

Below are some of our tips for making sure that you handle the security deposit correctly.

Understand the Laws and Regulations in Your State

As a landlord, it is important to understand the laws and regulations regarding security deposit returns in your state.

This includes understanding any deadlines for returning the deposit and any restrictions on how the deposit can be used.

Be Prepared to Document Damages or Repairs

Before returning the security deposit, the landlord should be prepared to document any damages or repairs that have been made to the property.

This includes taking pictures or videos, as well as keeping receipts or invoices.

If no damages or repairs can be documented, then the tenant should receive the full security deposit.

Have a Clear Process for Returning the Security Deposit

It is important to have a clear process in place for returning the security deposit.

This includes providing the tenant with a detailed explanation of any deductions and providing any necessary documentation.

Now that you are completely prepared for the move-out, you can begin with the move-out inspection, which we will discuss below.

Part II: Conducting The Move-Out Inspection

As a landlord, conducting a move-out inspection is an important step in ensuring the condition of your property is maintained and any damages or issues are addressed.

In this section, we will go over the move-out inspection process, best practices for documenting any damages or issues found during the inspection, and tips for handling disputes or disagreements about damages or repairs.

Schedule the Inspection with the Tenant

The first step in the move-out inspection process is to schedule the inspection with the tenant.

It is important to schedule this at a time that is convenient for both parties and to give the tenant adequate notice.

Prepare a Checklist or Inspection Report

Before the inspection, the landlord should prepare a checklist or inspection report.

This will serve as a guide for the inspection and provide a record of the condition of the unit before the tenant moves out.

Take Photos or Videos of the Condition of the Unit

During the inspection, the landlord should take photos or videos of the condition of the unit.

This will serve as visual documentation of the condition of the property before the tenant moves out.

And, since this step of the process is so important, let’s talk some more about it below.

Compare With Move-In Inspection

The last step of the move-out inspection is to actually compare it with the inspection that was conducted when the tenants moved in.

Then, while comparing, you can tell which areas of the property had damage and which ones stayed relatively the same.

Thus, it's extremely important to be as thorough as possible when a new tenant moves in and you conduct the move-in inspection.

Part III: How to Document Any Damages or Issues Found During the Inspection

Below are some of the best ways to document any issues found during the inspection to make sure that there are no disputes.

Keep Detailed Records of Any Damages or Repairs Needed

During the inspection, the landlord should keep detailed records of any damages or repairs needed.

This includes taking photos or videos of any damages, as well as noting any repairs needed on the inspection report.

Provide a Copy of the Inspection Report to the Tenant

After the inspection, the landlord should provide a copy of the inspection report to the tenant.

This allows the tenant to see any damages or issues that have been noted and address any concerns they may have.

But, even by doing that, there will still be disputes over the security deposit. So, in the next section, let’s discuss the ways to handle disputes or disagreements

How to Handle Disputes or Disagreements About Damages or Repairs

Even if you follow the whole process correctly, there may still be some disputes about damages or repairs from the tenant.

Below, we’ve outlined some things that can be done to make sure that any disputes are dealt with accordingly.

Communicate Clearly and Calmly with the Tenant

When handling disputes or disagreements about damages or repairs, it is important to communicate clearly and calmly with the tenant.

This includes addressing any concerns or issues in a timely manner and keeping the tenant informed of any necessary steps or deadlines.

Provide Documentation and Evidence of Any Damages

If there is a dispute or disagreement about damages or repairs, the landlord should provide documentation and evidence of any damages.

This includes providing any photos or videos taken during the inspection and copies of any receipts or invoices for repairs.

Follow the Dispute Resolution Process Outlined in the Lease Agreement

If there is a dispute or disagreement about damages or repairs, the landlord should follow the dispute resolution process outlined in the lease agreement.

This includes providing the tenant with a detailed explanation of any deductions and providing any necessary documentation.

Then, after the tenants are out of the property, you can begin to get the property ready for the next set of tenants.

Part IV: Cleaning and Maintenance: A Guide for Landlords

As a landlord, preparing a unit for the next tenant is an important step in maintaining the condition of your property and ensuring a smooth transition for both parties.

In this section, we will go over tips for preparing the unit for the next tenant, best practices for handling any necessary repairs or upgrades, and tips for handling any pest or cleaning issues.

Tips for Preparing the Unit for the Next Tenant

Below, we’ve outlined some of the most important tips to make sure that you are able to rent out the property again as fast as possible and in the best condition possible.

Clean the Unit Thoroughly

The first step in preparing a unit for the next tenant is to clean it thoroughly.

This includes deep cleaning the unit, including the carpets, walls, and windows, as well as any appliances or fixtures.

Make Any Necessary Repairs or Upgrades

Before the next tenant moves in, it is important to make any necessary repairs or upgrades.

This includes fixing any leaks, replacing any broken appliances or fixtures, and addressing any safety issues.

Paint or Touch Up Any Areas That Need It

Before the next tenant moves in, it is also important to paint or touch up any areas that need it.

This includes repainting any scuffed or stained walls, as well as any other areas that may need a fresh coat of paint.

Now, although all of these are completely necessary, it is important to know how to handle them and in which order to do them.

How to Handle Any Necessary Repairs or Upgrades

Knowing how to handle repairs or upgrades to a rental property is a vital part of being able to rent it out again.

Below is a list of our tips to make sure that this gets done as quickly and efficiently as possible.

Make a List of All Necessary Repairs or Upgrades

Before starting any repairs or upgrades, it is important to make a list of all necessary repairs or upgrades.

This will help ensure that all necessary repairs are addressed and nothing is overlooked.

Prioritize Repairs Based on Urgency

Once a list of repairs or upgrades is made, it is important to prioritize them based on urgency.

This will help ensure that the most important repairs are addressed first.

Obtain Quotes from Contractors

When handling any necessary repairs or upgrades, it is important to obtain quotes from contractors.

This will help ensure that the repairs or upgrades are completed at a fair and reasonable cost.

Bottom Line

Once you get the hang of the process, managing your property when tenants move out is just a matter of rinse and repeat.

Plus, the more systems you put in place, the less time and effort you need to spend managing those properties.

To finish off this section, we'll be covering everything you need to handle your taxes. Jump to the next section to continue reading.

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