SS100: What To Do When a Tenant Moves Out

What happens after a tenant moves out of your property? In this episode, Charles discusses the move-out process for landlords along with how to minimize downtime between your previous tenant and a new tenant.

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Welcome to Strategy Saturday; I’m Charles Carillo and today we’re going to be discussing what to do when a tenant moves out.

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There’s a process for landlords when a tenant moves out, and this process starts when the tenant notifies a landlord about not renewing the lease and their intentions to vacate the unit.

This process will be different if your tenant is moving out because of not paying rent or they’re being evict. But if the tenant has to fill the lease and they choose not to renew, this would be the process to follow as a landlord. Once a tenant notifies the landlord of their intentions to move out, the first course of action for the landlord should be to send a move out letter. This letter is restating the move out terms of their lease and details, the move out process for the tenant and clearly communicates to the landlord’s expectations so the tenant can quickly receive their security deposit back at the same time. Let them know that they will need to schedule a walkthrough so you can review and discuss any potential damages together. I would include a copy of the checklist you’ll be completing during the walkthrough. This way it is transparent what you are looking for and the tenant will not be surprised when they get their security deposit back.

When the move out inspection happens, record the condition of the property. When I self-manage properties, I would write a check on the spot to return the security deposit. This minimizes potential future issues, but most property managers will be form the walk through and then their boss will sign off on it and inform their bookkeeper to send the check. Now, state laws vary about security deposits, but if you perform the move out inspection with the tenant, this will minimize issues. If there is an issue during the inspection, they’ll be aware of it and it will not become a problem down the road. The problem with security deposits happen when there is a move out. There’s not a move out letter and a joint walkthrough, and then there’s a lot of unknowns, which will become problems. If you walk the unit with the tenant and there’s a stay in the carpet, they see it, you see it, you tell ’em it’ll be deducted.

They are aware of it being deducted right there. It is better to have a disagreement in the unit than months down the road when people are wondering why you’re deducted $400 from their security deposit. A final note, take lots of pictures before someone moves in upon move out and save and date them in the future. You can show them you know, what the unit looked like prior in a upon move out. Most tenants just want the security deposit back and rather have it back quickly, even if it is a little less than they were expecting. After the inspection, the tenant gives you back the keys. You should immediately change the locks of the property and begin preparing it for rental. So I hope you enjoy. Please do matter, rate review, subscribe, submit comments and potential show topics at Look forward to two more episodes next week. See you then.

Nothing in this episode should be considered specific, personal or professional advice. Any investment opportunities mentioned on this podcast are limited to accredited investors. Any investments will only be made with proper disclosure, subscription documentation, and are subject to all applicable laws. Please consult an appropriate tax legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Syndication Superstar, LLC, exclusively.

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