How to Ensure a Smooth Transition for the Next Tenants
You’ve gone through the tedious task of screening and selecting new tenants for your rental property. The current tenants are on their way out and the new ones are ready to begin their lease. There are certain things a landlord must do to make sure the transition goes smoothly from one tenant to the next. Here’s what you need to know.
Tenant’s Exit
Notice From Tenants: It’s always wise to get a 60 to 90 day notice from the former tenant to find out if they will sign on for another year (some states require only a 30 day notice). The earlier the notice, the more time a landlord has for property showings and repairs.
Once the tenants have given their move-out date, the landlord can plan accordingly. Some tenants leave earlier than the move-out day; others stay until the last possible minute. If they leave a few days earlier, this could give the landlord time to clean during what could be a stressful and busy week.
Security Deposit: Landlords should get the former tenants forwarding addresses to return their security deposit. Depending on state laws, landlords could have up to 60 days to return the security deposit. Use this time. If the deposit is sent too soon, unseen damage could arise from the former tenants and it would be too late to deduct the cost from the deposit.
Make sure to not deduct money for the wrong reasons. Some states don’t consider normal wear and tear to be counted towards damages.
Get Keys and Change the Locks: Landlords should have tenants return keys. If a tenant still has keys, they could still get in the property during the transition period. More importantly, the locks should be changed. Former tenants could have made extras, and landlords should always consider tenants’ safety.
Move-Out Inspection: After the tenants have left, perform a move-out inspection. Is there damage? Have they left behind personal property? Is the unit clean? Is the plumbing working properly? How does the yard look? Is the property looking and working like the day the tenants moved in? Having the tenants present can help them understand any issues with the house so they’re not surprised when they don’t get their full deposit back. Take notes and photographs. A checklist is ideal.
Transfer Utilities in Your Name: There will be some time between tenants when no one is occupying the property. The landlord becomes responsible for the utilities until the new tenants move in.
Incoming Tenants
First impression of the new tenants: Landlords should get to know their new tenants and know their names. A nice conversation can go a long way. Let them know about any quirks about the house (a door may need a little extra push to close all the way, or maybe a cabinet squeaks a little bit when you open it). Tenants who are comfortable with their landlords communicate better and could resign the lease after the first year.
Move-In Checklist: Tenants should be provided with a checklist that goes over the basics: Are the walls scuffed or marked? Are the countertops chipped? Does the toilet work properly? This is the tenants chance to fix any last minute issues. The checklist should be finished within the first few days. If the tenants fail to complete the checklist, they could be held responsible for damages.
Utilities in Their Name: Now that the lease has started and the tenants have settled in, it’s time for them to put the utilities in their own name.
Final Word
The transition period may only be just a few days, but the amount of work can make it seem much longer. The earlier of a start, the easier it will be. A good transition can set the tenants and the landlord up for an excellent working relationship.
