The Exit Strategy – A Landlords Guide to Tenant Moveouts

Tenant moveouts are never any fun. Even if you have one who you’ve looked forward to having move on, flipping a unit and placing a new tenant is a lot of work. So, whether you’re new to this process or a seasoned landlord, please continue reading for our step-by-step guide to tenant moveouts.

If needed, set a reminder on your phone 65 days before a tenant’s lease is due for renewal. If you are not renewing their lease, typically, it is a safe business practice to give a tenant 60 days’ notice of non-renewal. Landlords can do this using a state-specific form or a simple email. Depending on your specific state, you may have to give a reason for the non-renewal or pay relocation fees. Know and understand your state and local landlord-tenant laws.

If the tenant is offered a renewal but opts to move out, they generally must give 30 days’ notice to vacate the premises.   This is when the clock starts clicking for both the landlord and the tenant.

Acknowledge the Tenant’s  Intent to Vacate

In written form (typically email), confirm you have received their notice to exit. Let them know that they have the option to schedule a pre-moveout inspection (more on this below) within the final two weeks of tenancy. Also, let them know that, within those last two weeks, you will send another email detailing the costs associated if they choose not to clean the unit.

Check On Old Marketing Info for Your Unit

Get your marketing in order. Make sure you have bright and clear photos of the unit. Need help with photos?  Check out our blog: Tips for Taking Great Rental Property Photos.

Update your marketing and ads to ensure your information is correct. If in a downtown area, add all the local attractions and know the walk, bike, and transit scores.  For tips on how best to market your vacancy, read our blog: Marketing Your Rental Property: Get to Know the Neighborhood

Tip: Wait for the unit to be vacant before you show it and accept applications. Where it is tempting to turn the unit quickly, inevitably, issues will need to be resolved before a new move-in. Allow yourself the time to make your unit perfect. This effort shows the new tenant that you value your rental property and that you value them to ensure they have a clean, well-working home to move into.

The Pre Moveout-Inspection

Depending on the state you live in, the offer of this inspection may be mandatory.   If not, it’s a good practice to cover your butt on security deposit deductions.

Within ten days after acknowledging their moveout, send another email with a few dates and times when you are available to perform the pre-moveout inspection and ask the tenant to respond with the date and time they prefer. California mandates we offer this inspection at least 14 days before the stated moveout date.   If the tenant does not respond or denies the offer, we do not have to force it upon them.

Explain that this inspection is in their best interest. Let them know what you will be inspecting. Below is a sample of the wording used in our moveout acknowledgment email:

“Good morning, tenant. Thank you for your 30-day notice to vacate your unit.

We offer a pre-moveout inspection to show you what needs to be cleaned and remedied before moveout. It is typical to complete this inspection within two weeks of your moveout date.   Please provide your actual moveout date, and we will let you know some days and times we are available to do this walk-through.

As a heads up, you will need to clean your unit thoroughly before handing it back to us. I will send a list of precisely what you (or a cleaner) need to clean, and the potential charges should you choose not to clean those items before your exit date.

Let me know your final exit date, and we will go from there.

Stacie”

Two Weeks Before Move Out

During this time, the landlord should complete the inspection and email the exiting tenant clarifying exactly what the tenant needs to clean to receive their security deposit back. Usually, we try to send the cleaning requirement email 14 days before and schedule the inspection about ten days before the tenant moves out.

The cleaning requirement email should be very detailed. Don’t just say, “clean the kitchen.”   Be specific about every item you expect clean and how they are to clean it. For instance, we explain that the kitchen cabinets are to be clean inside and out. On the inside, they are to wipe down all the cabinets with a warm, damp cloth and dish soap, making sure to wipe out any stains and crumbs. Next, we ask them to please do the same with the exterior of the cabinets, asking them not to use anything abrasive that might scratch the surface. For drawers, we ask the tenants to vacuum out the crumbs, coffee grounds, etc. and then wipe the drawer’s interior again with a warm, damp cloth and dish soap.

We add detail like this for the oven, refrigerator, washer/dryer, dishwasher, microwave, shower & bath, windows, and blinds. We then tell them the amount we will charge them if they do not clean each item. See a sample of how we word our cleaning requirement email:

“As stated in the previous email, you will need to clean your unit entirely. We are very fair, but we are particular when it comes to the cleanliness of our units. Below, find the charges we would deduct from your security deposit should your unit not be clean:

➡️Interior windows X $15 each (Includes windowpanes and tracks. Please open windows and clean thoroughly)

➡️Interior window blinds X $20 each (Please wipe down each slat with a damp rag)

➡️Bathroom: including sink, vanity (please wipe clean inside and out), toilet, shower, shower door, mirror, floor, shelves, etc.: $200

➡️Kitchen Cabinets (vacuum & wipe down inside of cabinets and drawers, leaving no crumbs, oil, etc.) Cabinet faces and drawers, wipe down with a slightly damp cloth and dish soap (nothing abrasive).  Vacuum the inside of the drawers to remove crumbs, coffee grounds, etc.  Please make sure there is no dust and grease residue. $200

➡️General kitchen area: counters, sink, floor: (Please wipe and wash entirely.) $75

➡️Stove (use oven cleaner/de-greaser to remove all build-up): $75

➡️Refrigerator/freezer (remove shelves to clean fully): $50. You may have to unplug the freezer to wipe it down.

➡️Microwave: $25  (inside and out, including the glass turntable)

Dump fee for any items left on premises: $50

If you move out without cleaning and leaving items, we will deduct $755 from your security deposit.”

We have a cleaning service to which we can refer our tenants if they choose not to clean the unit themselves. Additionally, note in this email that keys, remotes, etc., are to remain on the property. Keys to the mailbox, gates, or garages, as well as remotes to garage door openers, ceiling fans, etc., should be left in plain sight at moveout.

Confirm the inspection with the tenant the day before via text or email. Ask them to reply, confirming if they will be present or not.

Enjoying our guide to tenant moveouts?

The Inspection

The whole point of the pre-moveout inspection is to show the tenant any cleaning or lease violations you might deduct from their security deposit.   In theory, the tenant will clean and remedy issues, so you will not have to deal with it when flipping the unit for the next tenant. So, here’s what we are looking for during our inspection:

Shelving or wall-hung TVs. Often these require bolts or fasteners to hold them up. Unfortunately, these also create rather large holes in the wall, which need special patching. We have it written in the lease that any holes over ¼” will result in a fee to repair.  Our walls are textured so its not as easy as just slapping putty on them.

Lease violations. Unreported leaks under sinks, windows, or appliances can damage cabinetry or flooring. They also can cause mold, which needs to be cared for in a specific manner.

Damages. We look for damaged windows or window coverings, damage to cabinets, flooring, doors & walls, shower, vanity, etc.

Evidence of rodents or insects. This can be from clutter or just a messy tenant. For example, we had to completely remodel a unit with an unreported fruit fly infestation. It was disgusting! Those flies (and their feces) were stuck everywhere, from the seal in the refrigerator door to the smoke detector wires.  Additionally, the window blinds and all the appliances had a ton of evidence of an infestation. So, we had to replace EVERYTHING. Let’s say this tenant’s $1200 security deposit didn’t make a dent in the cost.

We also look for items that may not be the tenant’s responsibility, like roof leaks, malfunctioning HVAC or irrigation, rusty rain gutters, etc.

This inspection allows us to show the tenant what needs to be cleaned, repeat the cleaning policy, and remind them to refer to the email that breaks down instructions and fees should they decide not to clean. It also allows us to plan what we will need to repair or replace once the tenant moves out.  If you’ve had a tenant in your unit for a while, consider replacing the appliances, carpet, and window coverings.  Get products ordered and picked up, schedule installations.  This way, once you’ve painted, you’re ready to flip it quickly, take updated photos, and start marketing.

Keep in mind that the tenant is likely still living in the unit. So, the floors may have a throw rug covering a stain, a couch blocking a chewed windowsill, or a poster may be hiding a hole in the wall. You won’t be able to see every area as you can when the unit is vacant but do your best. Take photos of all issues you find. Then, if you end up in court fighting over the security deposit, your photos and emails are your evidence.

If you find damages, discuss them with the tenant and explain there may be a fee to repair them. They may have a source to fix it, but it’s in your best interest to discourage this. You have yet to determine if the person is qualified, and your repair cost often increases if they botch the job.

For more information on inspections, including what’s considered wear and tear, please read our blog:  Why Landlord Inspections are Essential.

Post Inspection

Follow up with an email to the tenant discussing what you found during the inspection (do not include repair cost here).  Include again the cleaning request and associated fees sent in the previous email.  Confirm their moveout date and any other instructions needed.  For instance, advise them to turn the heater off or down to 60 degrees and to make sure all gas and water sources are off, not running.

After Moveout

Once the tenant has confirmed their moveout, get in there quickly (within three days).  Do another inspection to ensure they have cleaned and repaired mutually agreed-upon issues. Hopefully they’ll have it ready to go, and you have little to complete to get it ready for the next tenant. Make sure they have left all keys, garage remotes, etc.  Check the thermostat and turn off or down.

If you find issues, this is where you take photos once again. For example, take pictures if they cleaned only some of the kitchen cabinets or a few of the many windows and blinds. Also, take photos of all holes that require patching and any damage that you find that you may not have seen during the inspection.  If you use your mobile phone to take the photos, they are date and time stamped in the event they have to be submitted as evidence in court.  Never take video as they are usually not admissible in small claims court.

The next couple of weeks is your opportunity to get bids or repairs completed. If you need to hire someone to come in to repair damages, make sure they invoice you with the current date, the address of the unit, and all repairs made. You cannot provide invoices to the court that have multiple units serviced on one invoice. You’ll need one invoice with labor and materials per unit. If you are doing the repairs yourself, keep track of the receipts and your time to repair it.

Depending on the damage, you may have to send an estimate of repairs and security deposit deductions. In California, we have 21 days (not one day later!) to send either an estimate of repairs or a final security deposit distribution form to the vacated tenant. Usually, we will do our best to send the final distribution before the 21 days. The reasoning is that once they have money in their hand, they are less likely to try and fight you.  If you provide invoices, etc. plus let them know you have photo evidence available, they usually they move on.

Final Thoughts

The point here is not to teach you how to keep a security deposit. In all honesty, we have only held the whole deposit ONE TIME in all our years! We are upfront and organized when a tenant moves out.  Many tenants do an adequate job of returning our units to us in good shape. One time we were able to touch up the walls a little and have it listed within a few days.

We also hand our units over to the tenants spotless. When they move in, we make them sign a move-in inspection form (within 7-10 days).  This form confirms they received the unit  in clean and good working order. If they find dings on the flooring or a dirty cabinet, it should be noted on the move-in form.  If so, we will consider that damage or uncleanliness as pre-existing when they move out.  Often, we have already marked issues on the form prior to their own inspection.

If you own a single family home rental that will be vacant for more than 30 days, consider vacancy insurance.   For more information on what this is and why you may need it, read our blog:  The Who, What, When, and Why of Residential Vacancy Insurance.

This blog was a lot of information!  It was important to ensure our landlords have a guide to tenant moveouts.   Something to keep in mind is that we respect our tenants.  We provide a clean home, perform inspections, preventative maintenance, and are quick to respond if they report an issue.  Communication is important.  Do so clearly and respectfully.  Remember them on birthdays, holidays, and important events.  In return, you will have tenants who respect and enjoy living your rental properties.  Finally, always make sure you are following Fair Housing Laws when emailing and speaking to your tenants.  For 15% off any Fair Housing Institute course, use CODE: YLR15

Check out our other blogs to guide you on your self-management journey as a landlord:

How Landlords Can Add Value to Rental Properties

10 Things Tenants Need To Know From Landlords When They Move In

Why Landlords Should Not Accept Rent Payments Through Cash Apps

When Should a Landlord Require A Lease Guarantor?

Security Deposits: 5 Tips Landlords Should Know

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