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The Final Chapter of the Rental Cycle

The Final Chapter of the Rental Cycle
This will be the final post in our tenant rental cycle series. The first post was on October 20, 2014 and gave you an overview of the process. The next 12 (including this one) give details on each significant step along the way. If you can implement the ideas presented in this series, you will be on your way to becoming a successful property manager.

The last thing that needs to be done occurs after the tenant moves out. You will need to compare the tenant move-in inspection with the tenant move-out inspection and determine what to do with the refundable part of the security deposit.

You need to determine what work needs to be done and who is responsible. If your move-in/move-out inspections are good, this step will be easier. 

Keep in mind, the two most common issues that need to be addressed involve the walls and the floors. With the walls, a room at the average rental property should last up to three years with a good coat of semi-gloss pant.  With carpet, a good rule of thumb is that carpet should last 5 years at a rental property.

After you determine what work needs to be done and who is responsible, you need to figure out how much this work will cost. Then, you will need to send out a disposition of deposit to the tenants within 14 business days (in Arizona). 

This disposition document will explain how much the tenant will get back from the deposit and how much you will be applying to work needed to repair damage and get the property rent ready that you determined was tenant responsibility.

Make sure you get receipts from all contractors that do the turnover work at your property. If you have these and good inspections, you will be prepared should the tenant dispute their disposition assessments and decide to challenge you in court.