How would you handle move out inspection with tenant present?

[Dana Holland]

I have my first move out inspection coming up next week.  The tenants have requested to be present which by law in Arizona we have to allow them to be if they request it.  Throughout their lease they have been combative and argumentative and several times have tried to manipulate their way into getting what they want.  A month ago when giving notice they said they want to be present for the final walk through as they expect to get their entire security deposit back.  Last week they told me they had vacated the property and requested a final walk through the following day (20 hours later) which I told them I didn't have time for on such short notice.  I replied telling them the day and time of the inspection and that they are welcome to be present if they want to as it is their right under AZ law.  I also told them that I won't be returning the deposit to them at the move out inspection, or giving any written or verbal confirmation of the amount due back to them as I need to compare before/after photos, get repair quotes if necessary, etc.

My question is, how would you handle a final walk through with a difficult tenant like this?  It seems like a very awkward situation to have them hanging over my shoulder the whole time.  Also if I do see something that isn't as it should be and point it out to them, knowing them it will turn into a heated argument of "it was already like that", or "someone must have done that between the time we vacated and now" and it will be a no win situation. 

Any tips on how to best handle this type of scenario? 

[JR T.]

Send someone lower on the totem poll than you. Assistant, Realtor friend, whatever. Whoever you send should start the meeting by telling the tenants they are there to record what they see on your checklist and to record/relay any comments regarding what the tenant sees get marked on the list. Your representative should be clear that they are not a decision maker and only there to put together all of the information for the owner.