First vacancy for new landlord

[Brandon Heimsoth]

New landlord here and more questions. I bought a house last year with an inherited tenant. I received notice to vacate from HUD. I have a few questions about the move-out procedures, most of which deal with the damages and deposit. The Book on Managing Rental Properties outlines it pretty good but I still need advice. I'm not trying to just cash in the deposit. I want to be fair...but also want to know what is expected.

1. Previous landlord did not present me with Move In Condition Report.  So, how does one treat damages in these cases?  I could see where the tenant could say "that hole in the wall was there when I moved in" and I would have no proof that wasn't the case.  I admit, I should have at least recorded condition when I purchased...but I learn from my mistakes.

2. Is it common practice to just charge for carpet cleaning?  I will probably replace anyway but still wondering if that charge is kind of a given.  The same goes for door locks...that which I will definitely replace.

3. What about painting?  The Book on Managing Rental Properties lists that in the Common Deposit Deductions lists under General/Damages section.  What constitutes the charge for painting?  I imagine if a kid colored over the wall...but again...I don't have a move in report.  All that being said, the cost to paint a couple rooms would wipe out any deposit.

4. If charges outweigh the deposit, do you normally just cut your losses?  Do you list them on damages report but don't pursue further?

Any other words of wisdom?  I really don't know what to expect.  Maybe I'll get a perfectly clean and undamaged unit back, but I doubt it.

[Nathan Gesner]

Originally posted by @Brandon Heimsoth:

New landlord here and more questions. I bought a house last year with an inherited tenant. I received notice to vacate from HUD. I have a few questions about the move-out procedures, most of which deal with the damages and deposit. The Book on Managing Rental Properties outlines it pretty good but I still need advice. I'm not trying to just cash in the deposit. I want to be fair...but also want to know what is expected.

1. Previous landlord did not present me with Move In Condition Report.  So, how does one treat damages in these cases?  I could see where the tenant could say "that hole in the wall was there when I moved in" and I would have no proof that wasn't the case.  I admit, I should have at least recorded condition when I purchased...but I learn from my mistakes.

2. Is it common practice to just charge for carpet cleaning?  I will probably replace anyway but still wondering if that charge is kind of a given.  The same goes for door locks...that which I will definitely replace.

3. What about painting?  The Book on Managing Rental Properties lists that in the Common Deposit Deductions lists under General/Damages section.  What constitutes the charge for painting?  I imagine if a kid colored over the wall...but again...I don't have a move in report.  All that being said, the cost to paint a couple rooms would wipe out any deposit.

4. If charges outweigh the deposit, do you normally just cut your losses?  Do you list them on damages report but don't pursue further?

Any other words of wisdom?  I really don't know what to expect.  Maybe I'll get a perfectly clean and undamaged unit back, but I doubt it.

You can prevent some of this by requiring a joint inspection with the Seller prior to purchase. That gives you the opportunity to confirm any damages the tenant may be responsible for and then you can track it from that day forward. Too late, but maybe it will help next time.

1. If you have no evidence of the original condition, then it's your word against the Tenant. You have to decide if it's a hill your willing to die on or if you want to let it go. Cleaning is an obvious charge. If there are damages, you have to look at how the renter lived and make a judgment call as to whether they were "likely" responsible or not.

2. Read the lease. Does it require carpet cleaning? Were the carpets cleaned before they occupied? If this is not specifically addressed in the lease and you have no evidence of a professional cleaning prior to occupancy, it's an unreasonable expectation. I don't know the MO law regarding lock changes. Texas requires a lock change any time property turns over; my state doesn't require anything. Again, you have to make a call. You may want to eat the cost this time (unless Tenants behavior is forcing you to change them) and then add it as a tenant expense for the future.

3. It depends. Is there damage beyond "ordinary wear-and-tear"? How old is the paint? Were you planning to repaint anyway? If there's obvious damage (child drawings, 56 nail holes, etc.) then charge them. If it's questionable, err on the side of caution. If they only damaged one wall, cut costs by painting an accent wall instead of the entire room.

4. If charges exceed the deposit, I send the tenant a statement with the complete list of charges and the amount unpaid. I give them 30 days to remit payment in full or provide me with a payment plan request (I provide a form). Payments must be agreed to and I won't stretch them out more than 90 days. If tenant refuses to pay anything (that's probably the case 95% of the time) then I decide whether I want to send them to collections or just let it go. My unwritten policy is that I don't bother if it's less than $300.

Final word of advice: be prepared, but don't spend time worrying about problems that don't yet exist. Today has enough trouble of its own. Do your research and be prepared for best-case, worst-case and then enjoy life until it gives you something to worry about.