You’re almost ready to welcome a new tenant! You properly screened their background, signed the lease, and are now awaiting the new renter’s arrival. The tenant turnover process is almost complete, but the final piece of the puzzle is conducting the move-in/move-out inspection.
What Is a Move-Out Inspection?
A move-in/move-out inspection is a walkthrough landlords conduct to access damage in a rental. Some landlords conduct these inspections habitually throughout a lease term. However, most landlords only inspect rental units twice: before and after a tenant moves in or out of the property. After giving advanced written notice, landlords can inspect the property in two different ways:
- If the tenant is moving into the property – they should receive a checklist along with instructions to note any existing damage. This way, tenants can complete an inspection of their own before the landlord. After the tenant-led inspection, landlords can verify and document the existing damage.
- If the tenant is moving out of the property – landlords should walk through the apartment and inspect each room for damage beyond normal wear and tear. This allows landlords the opportunity to cross-reference the initial documents from the move-in inspection and verify which damage is new. After noting the damage, landlords can calculate and deduct the fees for repairs from the tenant’s security deposit.
Once landlords complete move-in inspections, they can begin forming a good landlord-tenant relationship for the remainder of the lease term. Once landlords finish the outgoing inspection, they can move forward with deducting fees from or refunding the tenant’s security deposit.
Why Do I Need to Conduct a Move-In/Move-Out Inspection?
It is imperative to conduct move-in/move-out inspections so you can keep track of your property’s maintenance needs. Move-in/move-out inspections are also vital to landlords who wish to refund tenants’ security deposits properly. It’s important to conduct these inspections to note the damage your property accumulates, the repairs needed, the cost of repairs, and to avoid any disputes with your tenant about their security deposit refund.
What Types of Damage Should I Look For?
Look for damage, filth, or changes made to the apartment that you did not agree to, such as new paint colors. It is unlawful to deduct charges from a security deposit to repair normal wear and tear. As you scan your rental, only note damage, filth, or changes that are excessive. The most common forms of damage to look for are:
- Unapproved renovations
- Rips, tears, or stains on the carpet
- Broken tiles, loose floorboards, or significant stains on the flooring
- Large holes in the walls
- Marks on the wall that require painting over
- Broken appliances, such as kitchen, bathroom, or light fixtures
- Cracked or broken windows
- Broken blinds
- Excessive trash
- Personal belongings the tenant has not removed
Landlords should also use the inspection to perform routine maintenance checks. While these checks shouldn’t affect your tenant’s security deposit refund, they can help you keep track of the property’s overall condition. While performing a move-in/move-out inspection, be sure to check:
- The HVAC system – Replace the HVAC filters and run the heat and the air to ensure the system functions properly.
- Plumbing – Check the pipes, faucets, and overall plumbing system for leaks.
- Mold or mildew buildup – Ensure your rental has no mold or mildew. If mold or mildew is present, clean all surfaces accordingly and cure the problem at the source.
- Evidence of pests or rodents – Take all the necessary actions to maintain pest control throughout the unit. Look for signs of pests or rodents and fumigate the property accordingly.
- Electrical wiring – Ensure all outlets and light switches function correctly.
How Do I Conduct a Move-In/Move-Out Inspection?
It’s essential to prepare for an inspection in advance. While an inspection is simply a walkthrough, what you find during the inspection determines the costs for repairs and your tenant’s security deposit refund amount. To ensure you perform the inspection adequately, always follow the following steps.
Create a List
Before the inspection, create a checklist of items you plan to inspect throughout the property. A landlord checklist for tenant move-out will help keep you organized, give you a sense of direction throughout the inspection, and ensure you review the property fairly. From excessive nail holes to undisposed trash, the list should include all elements that may cause deductions from the security deposit. This list should also match the checklist you gave your tenant for their move-in inspection. After your tenant documents the preexisting damage to the property, use the move-in/move-out inspection checklist to compare what they noted with your findings.
Schedule the Inspection
While most move-in inspections occur the day the tenant arrives, move-out inspections can occur either on the tenant’s departure day or shortly after. To schedule your tenant’s inspection, research local laws to see the timeframe within which you can perform the inspection. Then, give your tenant written notice of the upcoming inspection. Include this notice in the lease agreement letter for tenants moving into the property. Include the notice in the lease termination letter for tenants moving out of the property. Once the tenant agrees to a date and time, you can move forward with the inspection.
Decide If the Tenant Will Accompany You
There are pros and cons to inspecting with your tenant present. Before beginning, decide whether you would like your tenant to accompany you. If the tenant:
- Is present during the inspection – the landlord and tenant can remain on the same accord throughout the inspection. The landlord can clearly explain the charges deducted from the security deposit, and the tenant can sign their agreement during the inspection. However, having a tenant present may result in a less effective inspection. The landlord could forget to check certain parts of the property or become distracted by the tenant’s presence.
- Is not present during the inspection – the landlord will have space to complete the inspection without distraction. However, this increases the chance a tenant may deny deductions for damage and accuse the landlord of unfair charges.
Include your tenant in the move-in/move-out inspection process to avoid disputes about unfair charges. Assess the property individually if you want to inspect the unit without pressure.
Survey Each Room
It is essential to perform the inspection on an empty apartment. Surveying a vacant apartment ensures you can clearly see all areas that require repair. Before inspecting a property, instruct the tenant to remove all belongings beforehand. Then, begin the inspection by surveying each room individually. Once you approve one room, check it off your list before moving to another. Inspecting rooms one by one helps streamline the process and ensures you cover all areas of the rental. Once finished, compare your checklist to the tenant’s completed checklist and note any discrepancies in damage.
Offer a Space for Rebuttal
It is important to allow tenants a space for rebuttal. Once you document the damage, let tenants to explain the reason for the damage or to fix the damage themselves. For example, if you report nail holes in the wall, the tenant may explain it as normal wear and tear. If you document stains in the carpet, the tenant may volunteer to clean the carpet themselves. Finally, if you document a cracked mirror, the tenant may point to where they recorded this preexisting damage on their move-in inspection checklist. Offering a space for rebuttal gives your tenant the chance to understand your charges or opt to fix any damage themselves before you charge their security deposit.
Calculate, Then Document, Your Deductions
Once you complete the inspection, document all damage found throughout the apartment. Then, calculate the cost to repair said damage. Remember, deducting fees from a security deposit for normal wear and tear is unlawful. As you calculate all fees, ensure the cost deducted reflects the cost of repairs. Once you finalize deductions, provide a copy of the inspection report and subsequent charges to the tenant.
Make Security Deposit Deductions Easy with Apartments.com
From cleaning stained carpets to stripping unapproved paint, it’s easy to lose track of your rental’s repair costs. So, what do you do when it’s time to return your tenant’s security deposit? Luckily, Apartments.com has a great solution. Our expense tracking platform helps you summarize rental expenses by property and tax category. From there, you can easily export them to CSV or PDF formats to make doing your taxes a breeze. Track your expenses per property—and even upload receipts—without relying on complex spreadsheets or faulty memories. And when you're ready to present the deductions to your tenant? Export your repair expenses in PDF format with ease.
Calculating what to return from your tenant’s security deposit has never been easier. To conduct an effective move-in/move-out inspection and easily refund security deposits, trust Apartments.com.
Frequently asked questions
Is a move-out inspection required?
While not required by law, it is wise to conduct a renewal inspection. This helps landlords track the condition of your rental unit—even if the tenant plans to renew their lease. If tenants intend to renew, they do not have to remove their personal belongings during the inspection.
Do I give a move-out inspection if the tenant renews their lease?
While not required by law, it is wise to conduct a renewal inspection. This helps landlords track the condition of your rental unit—even if the tenant plans to renew their lease. If tenants intend to renew, they do not have to remove their personal belongings during the inspection.
What are landlords responsible for in the move-out process?
Landlords are responsible for inspecting their rental property for excessive damage or filth. Afterward, landlords must refund tenants’ security deposits, depending on the damage documented during the inspection.
How much notice does a landlord have to give to vacate a tenant?
Landlords usually have 30-60 days to send tenants a lease termination letter. This letter serves as notice to vacate the property following the end of a tenant’s lease.
