Step-by-Step Guide to Renting Out Your Unit When a Tenant Moves Out
Your tenant has notified you that they want to vacate the property and gives you a move-out date. Now what? When a tenant vacates a rental property, several key steps are essential to ensure a seamless transition and safeguard your interest as a landlord:
Review the Lease Agreement: Examine the lease agreement to understand the terms of the tenant’s departure, including any notice requirements and the expected state of the property.
Conduct a Pre-Move-Out Inspection: Before the tenant leaves, perform a comprehensive inspection of the property to assess its condition at least one week before the move-out date. This helps identify any damages or cleaning issues that need to be addressed before the next tenant arrives. On the move-out date, carry out a final walk-through, ideally with the departing tenant present.
Address Any Damages: Repair any damage identified during the pre-move-out inspection and/or final walkthrough. This may involve fixing holes in walls, repairing broken fixtures, or replacing damaged flooring. You may get the tenant to repair the damages before they leave. Alternatively, you may do the repairs yourself or hire a contractor and bill the tenant accordingly.
Market the Property: If the property is vacant, then jump to the activities listed in the “Prepare the Property for Rent” section before marketing the property.
Advertise the property to attract potential tenants. This can be done through online listings, signage, or working with a property management company. You may start advertising the property while the current tenant is still living in the property. It is best practice to give the current tenant at least 24 hours’ notice before each showing.
Screen Potential Tenants: Carefully vet potential tenants to ensure they are qualified. This may involve running credit checks, verifying employment history and references.
Sign a New Lease Agreement: Once a suitable tenant is found, sign a new lease agreement detailing all rental terms, including rent amount, lease length, and other important information. Make sure to collect the last month’s rent deposit at the time of signing the lease.
Prepare the Property for Rent: Once the old tenant moves out, make the property ready for new tenants. Ensure the property is thoroughly cleaned. This can be done personally or by hiring a professional cleaning service. You also have to do tasks such as painting, changing locks, and making necessary updates to keep the property in good condition.
Ensure Utility Accounts and Renter’s Insurance Are Set Up: Ensure the new tenant has set up their utility accounts effective their move-in date. You may call the utility companies directly to make sure of this. Also, obtain proof of renter’s insurance from the new tenant before they move-in.
Move the New Tenant In: After confirming that utility accounts and renter’s insurance are in place and collecting the first month’s rent, conduct a walk-through with the new tenant and address any questions or concerns. It is also a smart move to take a video of the property, along with photos, before the new tenant moves in and share them with the new tenant. This ensures that any potential disputes about the property’s condition at move-on can be easily resolved.
Follow-Up: Finally, check in with the new tenant after a week or two to ensure they have settled in comfortably. This not only helps address any issues that may have been missed but also helps build a strong rapport with your tenant.
By following these steps, you as a landlord can ensure a smooth transition when a tenant moves out, protecting their interests and preparing the property for the next tenant efficiently.
