Tenant Checkout List - With Tenant Present

[Hieu Ngo]

Going to do checkout inspection with tenant. What do you do with tenant that disagrees with your opinion of the condition on departure? What if they refuse to sign the checklist form.

Do you wait to give copy of checkout list to tenant with security deposit or do give them the checkout list right away?

[Marcia Maynard]

The property condition report upon move-in and move-out is one of the most important documents. It is best supplemented with photos. It should not be done in haste. You need to know what is required and what is customary for your location.

Our residential rental properties are in a jurisdiction that does not require a tenant be present for move-out inspection and doesn't require the tenant to sign a move-out checklist. Even so, I prefer the tenant to be present for a move-out "walk-through" with me, so I can ask them questions and I can point out damages as I see them and photograph them in their presence.

Take into consideration that not all property deficiencies will be noticed at move-in and not all will be noticed at move-out. I keep all the move-in and move-out property condition reports for a property over time to refresh my memory.

We give all tenants a move-out instruction packet. It explains how the tenant is to leave the unit, cleaning required, etc. It also includes a list of common charges for items that are missing or damaged by tenants. We ask the tenant to make an appointment with us to do a walk-through with us when they are ready to return possession of the unit to us.

During the walkthrough we ask them the following:

1. Do you know of any damages to the property? If yes - Please show me. (I photograph and note the damage). How did it happen?

2. Is there anything you know of that needs fixing? Any maintenance items? If yes - Please show me. (I photograph and note what needs to be done.)

3. We go through each room and area of the rental property and scan in a clockwise order. If I see something askew or notice damage not noted earlier, I take a photograph and simply say... "What happened here?" Then I wait to hear the back story and observe how they are telling me about it. I take notes.

4. What was your favorite thing about living here?

5. What was your least favorite thing about living here? Any suggestions about how we could improve?

6. If they were a good tenant.... Thank you for renting from us, we wish you the best in your next home. Let us know if there is anything else you need from us. We will be mailing to you the final report about the property condition and return of deposit within 14 days.

7. If they were a bad tenant... They probably chose not to be present for a move-out walkthrough and inspection. If they do meet with us, I proceed the same way I do with others.

8. Lastly, the tenant turns over the keys and we document if all the keys were returned. Then we ask the tenant to sign a "Return of Possession" form that further explains about how we do the final report and return of deposits - according to law.

I never sign a move-out inspection report with a tenant because I frequently find more damages when cleaning the unit during the turn. Also, I am not required to make my final report on return of the security deposit until 14 days after I have regained possession of the unit, so I wait until the final accounting has been done before I return any security deposit.

One time we rented a house to two young men who had never rented a house before. The tenancy lasted only 4 months because they were not fulfilling the terms of their rental agreement and would have been evicted. They moved out on their own after we discussed the situation with them. One guy was cooperative and one guy was quite childish. The guy who was childish refused to give me the keys at the end of our move-out walkthrough, saying "My mom told me not to give you the keys until you give us back our security deposit!" I told him, "That is not how it works. Until you give us the keys and return possession of the property to us, you will still be renting from us and we will charge you XX per day." The more mature tenant pleaded with his roommate to give back the keys to no avail. At which point I said, "You two talk it over and get back to me when you are ready to give me all the keys and return our property." Two days later the more mature tenant called me and met me at the property with all of the keys. We ran into him several years later and he apologized for his youthful behavior and told us he learned a lot of good things by renting from us and he was now in a good job and doing well. His roommate? Well, he had continued down the slippery slope of alcohol abuse and was still acting in his childish ways.