Top 10 things to be aware of when tenants are moving out

Top 10 things to be aware of when tenants are moving out

This is a RULE, not a suggestion, and should be the first item on your ‘new landlord’ list of to-dos, as well as your last, once your tenant announces intent to depart the premises. Periodically updating the information you obtain is essential, as laws change. Regulations governing rental properties vary from state to state, county to county, and occasionally, from city to city.

1. Be aware of the tenant laws

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1 Be aware of the tenant laws in your area


This is a RULE, not a suggestion, and should be the first item on your ‘new landlord’ list of to-dos, as well as your last, once your tenant announces intent to depart the premises. Periodically updating the information you obtain is essential, as laws change. Regulations governing rental properties vary from state to state, county to county, and occasionally, from city to city.

This should speak for itself. People hear what they want to hear and recall what they want to recall — even the best of them. It’s human nature. Toss in a little stress and a dash of self-interest, and memory flies out the window. Because of this, and to avoid your own misunderstanding, it is a good practice to document all important contacts and conversations at the moment they occur.

2

Document your interactions with tenants from the moment they announce they are not renewing, are leaving mid-lease, or are just plain leaving.


They must know that the cost of replacing any missing items will be deducted from their deposit, along with costs for repairing any damages.

The lease should always point out that the expense of a final cleaning is the renter’s obligation and will be deducted from their deposit before any

balance is returned to them, unless paid separately.

3

Remind departing tenants of what interior and exterior additions to the basic space are yours, and inform them that final inspection

will include a check of all inventoried items.


Again, this is a pointer that applies at the beginning of a lease, to provide protection at its end, or when a tenant leaves unexpectedly for any reason. Sit down with pencil and paper — or with your accountant, if you prefer —

and imagine the worst.

4

Ensure that deposits actually cover anticipated costs once a tenant leaves.


Waiting to inspect after the tenant has departed is unfair to the tenant. Inspecting before the tenant has left affords them the opportunity to make

repairs, replace items (after discussion to assure the replacement is adequate) and clean the premises thoroughly on their own nickel, rather

than lose a deposit that might be counted on toward a first-and-last deposit on their next rental, or in the purchase of a home.

5

Inspect the premises BEFORE tenants leave.


Landlords have often been blindsided by tenant-caused damages that do not come to light until the tenant has left town, is in another state, is not returning your calls, or ignores your letters. Don’t invent, but don’t discount, any problems that become apparent after the renter’s personal possessions have been removed, when removal allows a closer inspection.

6

Inspect again a few days AFTER the tenant has departed.


Most states and municipalities allow 30–45 days for a landlord to retain a deposit before being obligated by law to return it. Make good use of the

time allowed to ensure losses are covered.

7

Because of point 5, never return a deposit until the law obligates you to do so.


8

Never — and I mean never — badmouth departed tenants to the neighbours.


A thoughtless, but disparaging remark about former renter is dangerous, and can spark a winnable lawsuit for defamation of character. A landlord rarely knows the extent of the tenant’s relationships with neighbours and even a casual acquaintance will be eager to report your words, if a new address or other contact information has been left with them for mail forwarding. No matter how strong your feelings are, just DON’T.

9

If tenants are leaving in violation of the lease, or have left without warning, seek legal assistance immediately, unless there are

unavoidable, extenuating circumstances.


Sometimes bad things happen to good people. In those instances, wish them well, do your inspections, settle deposit issues and start placing ads.

if you cannot rent the property, and have documented your unsuccessful efforts; Then — and only then — do you have legal grounds to demand that the departing tenant be held liable for the monetary balance remaining on the lease. Again, seek legal or real estate help to learn the available remedies.

Do not begin cleanup before the premises have been seen by the law enforcement officer assigned to your case. Police photos will be taken to substantiate any charges,

but take your own — lots of them — for insurance purposes.

10

If a tenant leaves and, upon inspection, it is apparent that extensive and intentional damages have been incurred that are extensive and

presumably intentional, do not hesitate to make a police report — immediately, not later.


‘Nuff said. Consider yourself wiser.


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Top 10 things to be aware of when tenants are moving out