Eventually, tenants experience that “feeling I get when I look to the west, and my spirit is crying for leaving,” which Led Zeppelin describes, and they move away.
When this happens, you will want to make the transition of the tenant out of 
the house as smooth as possible. The best way to do this is by telling the tenant what you expect from them. We send a letter that clearly spells out the checkout process. This way there are no misunderstandings, we are all on the same page, wavelength, sheet of music, or stairway to heaven.
Move Out Information Letter to Tenants
Some key things that we mention in our letter are:
1.) How much of their security deposit will be returned.
2.) There will need to be a review of their check in sheet (and attach a copy for them).
3.) What you expect in terms of house cleaning.
4.) Reminders to contact the utility companies to disconnect services in their name.
5.) Reminders to cancel newspaper and other subscriptions, and to provide the Postal Service with a change of address form.
6.) Reminders to contact us when they are ready for the final house inspection.
7.) A note that if keys are not returned, they will be charged.
8.) Any costs that we must pay to repair the house will be taken out of their security deposit, and we will refund the money due them within 10 days.
Download a copy of my “move-out” information letter to tenants.
(The link to my letter may not work on Internet Explorer. It seems to work fine with Google Chrome.)
Why be lenient with the damage deposit?
In general, we are pretty lenient when it comes to charging tenants for little things on the checklist. If they move out, and they have been good tenants, we are going return to them most, if not all of their security (or damage) deposit back, barring some obvious big broken item.
Our perspective is that we made a lot of money from the tenants over the years, and we don’t want them to leave on a sour note just because they thought we might have overcharged them on some ticky-tack repair.
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_____________________
Coming VERY Soon!
- How to Turn Your Home into a Rental House, Instead of Selling It
Tags: Beard and Mustache Competition, damage deposit, fearless men, Led Zeppelin, managing tenants, move out letter to tenants, Movember 2012, Stairway to Heaven, the right way to handle tenants who are moving out, what to do when tenants move out
Thanks for the mention and promoting our competition! Looking forward to your submission.
John recently posted..Pinching Pennies
It should be a great contest.
Thanks for information. I’m Interested in downloading the copy of your letter but the link is broken.
Bryan,
Thanks for pointing that out.
The link works on Google Chrome, but it appears not to work on Internet Explorer.
Thanks for the share Terry! Are you growing out a winter stache too?? I’ve already got some beard going on. Can’t grow it much further working in the education world!
Todd – Fearless Men recently posted..Gadgets Are Forever: The Best Financial James Bond Gadgets
Yes, I’m planning to grow out a stache!
Great list. I have the same lenient policy, also because I don’t live in the UK where my flat is and I want to avoid trouble for other roommates when one moves out. There is a tax deduction on normal wear and tear anyway, so you can get your money back there.
Pauline recently posted..Caring for your eyes on holiday: 5 tips from a pro
I agree, it pays to stay on good terms with your tenants as they depart.
Who knows? They might decide to return someday.
Thanks for this checklist. I’m interested in investment properties in a few years and this will help me when I finally make the plunge. Your site is very interesting. I look forward to checking out more of it in the future.
justin@thefrugalpath recently posted..Your Small Business Needs an Emergency Fund Too
Years ago I had a landlord weasel me out of a $400 deposit. I was an awesome tenant, but my dog scratched up a bedroom door. She said it cost $400 to fix. I don’t know what sort of door she bought, but I’m sure it wasn’t that much. It really rubbed me the wrong way, so I can see how avoiding that would be to your advantage. You never know when someone might need another rental or have a friend who needs one.
Kim@Eyesonthedollar recently posted..How To Have a Cheap European Holiday
That was really short-term thinking by your landlord. He may think he won the battle, but he definitely lost the war. There’s no justification for charging that much for a door.
If I were the landlord, I would just paint over the scratches on the door and not charge the tenant anything.
Terry,
I am lenient on deposit returns as well. I have re-rented to one tenant already and got several leads. If I did not treat them fairly, then I would certainly not have gotten future vacancies rented as quickly.
Chuck @ Landlord Investor recently posted..Using Remnants to save $ on your rehabs
Thanks for mentioning that. That really shows the value of treating your tenants with kindness and respect.
Terry, this is a really great list. Something I’ll have to hold onto for the future if I ever have rental real-estate. Communicating everything clearly like you’ve done can only increase your chances of having an easy transition.
Jason Clayton | frugal habits recently posted..What’s with all the Closing Costs and Fees when getting a Mortgage
If you decide to take the plunge to investment properties, let me know if you have any questions. I’ll be glad to assist you anyway I can.
Checklists are so handy. I use them for everything. It’s good to have a list of things that need to be done to remind people since packing and moving tends to make everyone a bit scatter brained.
Untemplater recently posted..The Entrepreneur Life: Interview With The Founder Of Nuts And Bolts Media
Yes, I think particularly tenants need guidance when they are moving since their minds are full of things that they must remember to do.
So far we haven’t had any problems with renters moving out, but I’m definitely curious to read your full move-out letter as it seems like a good formality to have just as a CYA. That way there can be no, “You didn’t tell me…” down the road.
Mrs. Pop @ Planting Our Pennies recently posted..IRS Double Standard – How Much Is Hair Worth?
As you know (as a fellow investor/landlord), the more communication you have with the tenants, the less chance of either side having unrealistic expectations who the tenant moves out. My letter is sort of gentle way for both sides to have a happy conclusion to their tenant-landlord relationship.
Great list Terry! It’s nice to see it from a landlord’s perspective. When we rented in the past, with the exception of one horrible one which we had to sue, most of our deposit would be returned to us. Usually the only thing that would be held out was for carpet cleaning, but we still got a big chunk of the deposit back each time.
John S @ Frugal Rules recently posted..October Blog Goals Update
I’m glad to hear that things generally went well for you. I really can’t understand landlords who charge excessive amounts for seemingly minor repairs. I would rather have a tenant leave happily than to leave on a sour note. If nothing else, it creates bad karma.
I’m not in a position yet to turn my house into a rental but please let me know when your book comes out. I want to be prepared when I am ready.
Thanks for the note. If all goes according to schedule, it should be released in December.
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