Another year goes by and before you know it, your tenants’ move-out day is upon you! As you walk the freshly vacated apartments during move-out inspection, it’s normal to find small things that need to be fixed or given an upgrade before the space is ready for someone new. Maybe during the make-ready process, you’ll need to replace the blinds, deep clean the carpet, or give the unit a fresh coat of paint. For the most part, everything during the unit turnover process typically goes smoothly — until you find that one.

Everyone who works in property management has been there: You’re standing in the doorway of a rental property after a resident moves out, shaking your head and wondering how anyone could leave their former home in such condition. Your feet meet carpet torn up by pets, while your gaze turns to holes in the wall and dirty surfaces everywhere. As you take stock of what needs to be done, you realize, “I’m never going to get the previous tenant to pay for these damages.” On top of the actual cost of making repairs, you’ll also be stuck with lost rent depending on how long it takes to get the unit ready for the next occupant.

However, not all hope is lost! While it may be tricky to track down a previous tenant and get them to pay for damages without a fight, take this experience as a lesson learned. Prevention is key, and there’s a lot you can do before the damage is done to protect yourself — and keep your units in top condition for new residents.

5 Tips for Improving Unit Turnover

Here are 5 tried and true ways you can make the apartment turnover process as smooth as possible for yourself and for your tenants.

1. Draft a Clear and Comprehensive Lease Agreement

The foundation of protecting your real estate investment lies in the lease agreement. The terms of the lease must clearly outline the tenant's responsibilities regarding property upkeep, cleaning, and any potential move-out charges. The more detailed the rental agreement, the easier it will be to justify charges when the tenant vacates. If your lease does not state any pricing for move-out charges, consider adding that to your resident handbook so your residents have access to that information well before their move-out date comes.

Key Points to Include:

• Specific cleaning requirements (e.g., carpet cleaning, appliances, etc.). It’s important to note that cleaning requirements may vary per state, but in general, it is nationally recognized that a rental unit should be returned in the condition a tenant received it in. Do some research on what you can and cannot take out of a security deposit in your area, and give your tenants clear expectations based on what you find in state laws.
• Guidelines for acceptable wear and tear versus damage. It can be difficult determining the difference between what’s considered expected wear to a rental vs. actual damage. In general, normal wear considers gradual deterioration of a property based on its previous condition and lifespan, whereas damage is destruction beyond what’s normal. For example, faded paint isn’t considered damage, but peeled paint from a command strip would be.
• A clear list of items that could incur charges if not properly maintained. It’s expected that there will be work needed when a tenant moves out of a rental, but the property shouldn’t have any trash or a tenant’s personal property left behind, nor should it have any significant renovations needed. Most people will be good tenants who pay rent on time and maintain the unit’s condition. If they do make a mistake during the rental turnover process, it will likely be an accident that could be cleared up with some quick communication.
  
  In some edge cases, though, there will be more conflict. For example, say you find damage under the sink from a leak. You check the form they filled out on their move-in date and do not find this damage noted. You check your maintenance request history and find the resident failed to report the leak, so you charge them for the damage. The tenant then disputes the charge since it was from a leak, and do not feel they should be held liable. They may even take this issue all the way up to small claims court. In these situations, we recommend you seek professional legal advice. However, in the future, it could benefit you to emphasize what damage is and is not covered by the tenant during move-in.
  
  Note: Disputes should always be in writing, and should include any evidence the tenant has, including photos, past communications, and maintenance requests.

2. Complete Routine Inspections During Tenancy

Regular inspections throughout the lease term can help catch issues early and remind renters of their obligations. It may be beneficial to do a walkthrough with a turnover checklist in hand a month or two prior to move-out day, where you can document any obvious charges that will be incurred such as lightbulb, blinds, or carpet replacement. Document any damages or areas of concern and communicate these with the tenant prior to them moving out. That way, they’ll know that their final account statement will have those charges and they will be prepared to pay them right away. Addressing issues as they arise via written notices can reduce the likelihood of significant problems at move out, ultimately minimizing disputes over charges and lease violations during tenant turnover.

3. Offer Move-Out Guidelines

Provide tenants with a detailed move-out checklist well in advance of turnover time. This checklist should include everything they need to do to avoid charges, such as cleaning specific areas, removing all personal belongings, and addressing any minor repairs (Think: Small areas that need wall spackling or maintenance requests that need to be entered). This is also a great time to let them know what repairs and replacements will cost. For example, if you are charging each resident $25 per bag should they leave any trash or personal items behind, make that clear in your move-out guide. This guide can be emailed to residents, but having it linked to your website is another great way to ensure tenants have access to this information should they need it.

4. Ask for Move-In Inspections and Documentation

Once the next tenant picks up keys and sees their new apartment for the first time, it’s important that they document its condition. If you are turning several hundred new leases in a short time frame, it’s almost guaranteed you are going to miss something. Having the tenant sign off on a report to acknowledge the properties initial state gives you a benchmark on what the tenant should truly be charged for come move out time vs. what was already there from previous residents. Having a record of a unit’s condition can also help you plan your preventative maintenance in the future.

5. Be Responsible for Clear and Consistent Communication

Turnover costs, whether big or small, can come as a shock to the previous tenant. They may think that the apartment was left in great condition and not be on the lookout for any last-minute move-out charges. If you want to make sure you get your payments, it’s important that you use multiple touchpoints when communicating move-out charges with previous residents. Rotating between email, first class mail, phone calls, and text messages for several months after move-out will help you ensure that no prior tenant can come back and say that they were never made aware of the charges posted to their account. If you manage your rentals with ApartmentAdvisor ASSIST, you can also easily add turnover charges to your tenants’ accounts and communicate with them via their free resident portal.

You’ll also want to make sure you keep diligent notes on each account, especially if you are accepting payment plans or have any disputes. Many move-out statements will go to collections if they remain unpaid for an extended period. If that is the case with your property, including that in your final communications can help motivate your residents to pay off their outstanding balances.

The Bottom Line

Unit turns can bring their fair share of surprises, but with the right preparation and strategies in place, those surprises don’t have to turn into setbacks. By establishing clear expectations through your lease agreement and regular communication, you can minimize the chances of unexpected damages and disputes.

Even when faced with the worst-case scenario — a unit left in complete disarray — having a structured approach to documentation and communication allows you to effectively manage and recover costs. It’s not just about charging for repairs; it’s about maintaining the integrity of your property, allowing you to streamline the transition for new tenants. With these practices in place, you can handle move-out charges with confidence.