When residents move out, you have one real opportunity to go through the house with them to document any damage they left behind. If you miss anything, it can be much harder to prove that the resident was responsible for the damage. Plus, if you’ve already refunded the security deposit when you discover an issue, you could end up losing money.
That’s yet another reason that we at Haven Homes believe it’s so important for investors like you to have comprehensive systems in place to handle your property management. While your move-out walkthrough is crucial, it’s only as good as your initial move-in walkthrough. Why? Both steps work together to provide documentation that protects you, the owner.
That’s why we spend a considerable amount of time going through the home with the resident during move-in to verify and document that everything is in proper working condition. That way, during our move-out walkthrough, we have the necessary documentation to compare the before and after and accurately assess any damage, along with the corresponding repair costs. Want to learn more? Read on to find out more about how you can ensure you’re protected.
4 Steps for an Effective Move-out Walkthrough
While a good property manager should be conducting regular exterior and interior inspections, a move-out walkthrough is different because it’s the property manager’s opportunity to get into the home while it’s completely vacant to evaluate its condition and assess the damage that has occurred while residents have been living in the property.
The process begins when Haven Homes receives notice that a resident plans to move out. (Our leases dictate that residents give a minimum of 30-days notice.)
Here are the 4 steps we follow for an effective move-out walkthrough:
1. Schedule a pre-move-out inspection
Time is of the essence when it comes to move-out walkthroughs, so a pre-move-out inspection needs to be scheduled within 48 hours. While this isn’t as exhaustive as the final move-out walkthrough, it gives property managers a cursory idea of the home’s condition. This is important for two reasons. First, it lets the property manager know whether or not they can begin marketing that home for future applicants, and second, it gives the resident ample time to correct any identified issues. It’s important to make sure residents understand that they are being given the opportunity to fix damage they’ve caused, and if repairs aren’t complete by the final walkthrough, repair costs will be deducted from their security deposit.
2. Transfer utility ownership
In order to conduct a proper move-out walkthrough, utilities—electric, gas, and water—must be on. Otherwise, you can’t effectively check appliances and plumbing. In order to ensure there’s no gap in the utilities, plan to schedule a transfer of utility ownership for that property for the move-out date. This way there’s no disruption from resident to resident and you’ll be able to check everything thoroughly.
3. Schedule the move-out walkthrough
Send the resident an email with a window of dates and times to choose from for their walkthrough. This provides some level of accommodation for the resident. However, the move-out date should ultimately be at your convenience.
Inform the resident that the unit should be clean, all items indicated in the pre-move-out walkthrough should be repaired, and all furniture needs to be removed. Be sure to communicate a list of resident/property manager responsibilities and a notice that a fine will be charged (typically $50.00) if they’re a “no show” or the home isn’t ready. Fines encourage residents to be prepared for their move-out date and also reimburses the property manager for any wasted time.
4. Perform the move-out walkthrough
At Haven Homes, we use a digital system to retrieve the move-in walkthrough data collected when we first rented the property to the resident. Our system displays the move-in and move-out data (including all notes, photos, and details) side-by-side for an easy comparison.
In fact, the move-out walkthrough is an exact replication of the original move-in walkthrough. The only difference is that during the move-in, the property manager demonstrates to the resident how to use and work the appliances while during move-out, appliances and items are tested to ensure they are still in working order.
For documentation purposes, be sure to photograph any broken items or appliances. This becomes important if you need to bill back the resident for the repair and/or the resident contests the allegation.
Once the walkthrough is finished, both the resident and the property manager sign the move-out walkthrough document as proof that both are in agreement about the state of the home. (If residents are not present for the walkthrough, they are essentially giving up their right to contest any issues.) After that, the property manager emails the document to both the resident and property owner. At Haven Homes, we also load the data into our system so we have easily accessible digital records.
Follow our four steps and you’ll minimize the worry that you paid for a repair that was actually a resident’s responsibility and reduce vacancy time by keeping everything on a tight schedule.
If you want to learn more tips about property management, download your Comprehensive Guide to Effective Property Management.