It’s hard to imagine a rental property owner who does not do beginning and final walkthrough inspections, but you’d be surprised how many do not care to take the time to do these tasks. Maybe they are unaware of how these walkthroughs create positive tenant relationships and cover their business when trying to keep a security deposit. The following paragraphs will explain move-in/move-out inspections for your rental property and why they are essential to your real estate investment business.
Move-In Inspections
Let’s assume that you, as a landlord, have gotten your unit all prettied up for the new tenant. Fresh paint, new carpets, all the doors, cabinets, appliances, and electrical and plumbing are in good working order, plus the whole place has been cleaned top to bottom. Finally, it’s ready for the tenant to move in and take possession.
At this point, it doesn’t seem like there would be much to inspect. Not so much for the landlord. Where the move-in inspection would appear to be more for the tenant’s sake, it benefits both parties. Walkthroughs help landlords track damages and wear and tear throughout a tenancy. They also help tenants by allowing them to notate damage found upon move-in. For instance, a dent in the dishwasher door.
However, before the tenant moves in, the landlord should go around the unit and check all the plumbing, electrical, smoke detectors, appliances, windows & blinds, door locks, etc., to ensure they all work correctly. Take photos of EVERY corner of the unit so that the tenant can’t come back and say there was a dent in the dishwasher if there wasn’t.
Tip: Do not do video walk-throughs. They are rarely admissible in small claims court should a legal battle ensue.
If possible, we like to do the walkthrough with the tenant on move-in day. For example, we have them sign off that the stovetop turns on, the hot water works, the windows/blinds open easily (in case of fire), the smoke detectors beep, the door locks lock, and the cabinet door hinges are tight and close properly, etc.
If meeting them in person is not an option, then the tenant should be allowed 10-14 days to live in the unit and have ample time to experience “all the things” before signing off. Then, have a form on the counter ready for them to complete, a stamped addressed envelope, and a notation of the date it needs to be completed and returned.
The move-in walkthrough is for the tenant to notate if there is a hole in the window screen, a stain on the carpet, or a loose bathroom towel bar. Why is this important? When you do your periodic inspection and find the kitchen cabinet door in the hall closet with the hinges missing, you can rightfully charge them to repair it if they do not do it themselves before move-out. You have proof that there was nothing wrong when they moved in, and if you did the walkthrough with them, they would have signed the form agreeing to the acceptable condition of the property. Are you seeing how move-in/move-out inspections for rental properties are important?
It’s sad to say, but there are few cases where a landlord will win a “he said/she said” case. A landlord must have proof, and the move-in walkthrough starts with that. It shows the tenant you run your rental property business professionally. It shows that you respect your property and expect the tenant to do the same. A tenant is less likely to challenge a landlord if they know they have signed off on the condition of a property.
What’s Wear and Tear?
Wear and tear are tough to define, and the level of acceptable damage varies by state. As we have stated in nearly every blog, know your local and state laws regarding rental property and landlord-tenant relationships. Acceptable wear and tear would happen regardless of who lives in a space. For example, minor stains on carpets, scuffs on walls, and a scratched appliance constitute normal wear and tear whereas broken light fixtures, pet stains on flooring or chips and cracks in countertops would be not.
But things happen, and if your kitchen cabinets are on their way out and you are just trying to get through one more tenancy with them, then be reasonable. If the window screens haven’t been repaired or replaced in many years, you’ll have difficulty charging the tenant for replacement if they are frayed.
As Apartments.com has posted on their website:
“If you are struggling to spot the difference between normal wear
and tear and property damage; Merriam-Webster defines normal
wear and tear as “normal depreciation. Meaning that if someone
lives in a rental, it will appear lived in by the time they move out.
To paraphrase Georgia law, landlords cannot fix up their rental
property at the cost of the tenant. You must return the tenant’s
security deposit if there is no property damage beyond normal
wear and tear.”
Move-Out Inspections
This walkthrough may be a requirement and depends on which state your rental is located within. For example, a landlord must offer a pre move-out inspection within two weeks of the tenant’s stated move-out date in California. The purpose of this inspection is to show the tenant ALL the issues that the landlord would take a deduction off of the tenant’s security deposit. Now, I imagine you can see why the move-in/move-out inspection for rental properties is essential to your real estate investment business.
This inspection allows the tenant to repair or replace any issues found by the landlord. For instance, if the landlord has it noted in the lease that the tenant is only allowed four holes per wall, not to be larger than ¼” and during the walkthrough, finds the tenant has a display of 6 snowboards bolted to the wall. The tenant can repair the wall (or hire someone to do so) before they vacate. However, should an unauthorized pet chew and shred the carpet, then the tenant must pay to replace the carpet. Then, during the final walkthrough on move out day or soon thereafter, the landlord can verify all the items noted were repaired. If not, the time and materials needed to complete each task can be deducted from the security deposit.
What We Do
Telling them what needs to be remedied to receive the full deposit back includes being specific about cleaning the unit. For example, we show our tenants (and send a reminder email) that the kitchen cabinets need to be wiped down inside and out, remove the shelves and drawers when cleaning the refrigerator, and wipe down and clean the windows and blinds with a list of other items.
Be as detailed as possible. We also include the amount per item to be deducted from the security deposit should they NOT clean it. For instance, the items usually add up to around a $450 fee should they choose not to clean. Of course, we also send them the name of our cleaning company in case they want to hire them. These notices are a chance to have the tenant return the unit to you in as good of condition it was received at move-in; Thus, lessening your turnover time.
BONUS!
To assist our readers, click here to access a move-in/move-out inspection form to use in your rental property business. It’s best used for up to a 3-bedroom, 2-bathroom unit and includes a separate laundry room and garage. It has signature links for both move-in and move-out by the tenant and the landlord. Always send a photocopy of the form to the tenant after they sign.
These walkthrough inspections are essential to both the landlord and the tenant. It begins the landlord-tenant relationship openly and honestly. The tenant knows the landlord cares enough to ensure the unit is in good order when they take possession. Likewise, the landlord is kept in check should any issues arise.
Please leave us a comment letting us know what you think of our blogs! Questions? Contact us at Stacie@YourLandlordResource.com OR Kevin@YourLandlordResource.com.
Check out our other blogs to guide you on your self-management journey as a landlord:
Why Landlord Inspections Are Essential
Who is Responsible for Which Repairs at Your Rental Property