Check Out, Damage and Deposits

This section covers planning the checkout, deposits return, disputes and recovery of monies.

Where the Tenant will not voluntarily vacate

Where the Landlord or Tenant cannot come to an agreement because of differences or the Tenants are non responsive to calls letters etc, the Landlord has little choice but to consider serving Notice. The objective here is damage limitation for if there is no resolution the situation can become more complex; including Applying for possession, appointing Bailiffs and the removal and disposal of goods.

Planning the Checkout?

Prior to checkout you should work with your tenant to for this should lead to a smooth exit. It helps to define your expectation of the check out process and the cleaning requirements you have of the Tenant.
 
Should the Tenant dispute proposed deductions from their deposit the Dispute Service, who will decide your claim will require a "Landlord's Evidence Form" along with  
  • Vacating Instructions for the Tenant  - Handing back the property to the Landlord  and check out cleaning instructions
  • The inventory must be checked and agreed with the Tenant prior to the deposit being returned, preferably on move-out day, preferably being sign by all parties with any damages agreed and signed (this is stronger evidence).
  • Previous copies of property inspections and notifications of damage may form part of the basis for determining deductions. If an inventory clerk was commissioned for the check in the same should be used for the check out.

In law, the inventory forms an agreement between the Landlord and the Tenant as to the true condition and contents of the property at a specific moment in time. Condition statements such as good average condition are highly subjective. Where there is a dispute and the Tenancy Dispute Service arbitrates they accept dated photographic and video evidence. The provision of such removes much ambiguity and strengthens the chances of a resolution in the landlord's favour. Remember the burden of proof is on the claimant i.e. You.

The stronger your inventory the more chance of success. Remember "91 per cent of dispute cases settled by Mydeposits adjudication service found in favour of the Tenant"

As part of the checkout process

It is very important that the inventory is checked in this way immediately prior to the Tenant
leaving, so there can be no argument about any damage occurring after the Tenant has gone. Should you identify damage after the Tenant has left it becomes extremely difficult to proof for you were negligent in your process (Tenants says Landlord and I checked signed agreed). So if furniture has been moved - move it and look for the classic burnt/stained carpet marks 

A rent statement should be prepared and provided to the Tenant and meter readings must be taken and ideally the Tenants provided with a letter of surrender.

After Move out (Preparation to let in reverse)

Should there be a dispute about damage or deductions only disputed portion of monies should be retained until all outstanding issues have been resolved, usually:

  • Damage beyond normal wear and tear
  • Cleaning - this is a highly subjective clause often included in agreements; for a tenant is not obliged to return the property in a more favourable state than enjoyed; and we have to allow for fair wear and tear
  • Rubbish removal
  • Lost keys, lock replacements
  • Outstanding rent
  • Other outstanding liabilities which may be defined in the agreement; which are valid clauses
All of these possibilities should be specified in the Tenancy agreement. If all is well the deposit [or any undisputed portion] should be returned within a 10 days. See deposit schemes definitions for returning of deposits