What happens when a tenant moves out?
Both negotiation and resolution rely on good quality inventory and check-out inspection reports.
A check-out report should be carried out, using the same format and terminology as the check-in report, so that the two reports can be compared. Another option at check-out is to do a ‘schedule of the differences’, which will just record the end of tenancy changes against the check-in report (another reason for the check-in report to be thorough).
Either way, these should use short, descriptive words about the condition and cleanliness that highlight any differences from the original report.
Photographs or videos should be included to support the descriptions and be taken from the same angle as those in the check-in inventory, plus any others that clearly show damage or deterioration.
Even if no deposit was taken, the landlord or agent will need to prove that the tenant is responsible for any damage, missing items or cleaning-related costs at the end of the tenancy. Both negotiation and formal resolution rely on the quality of inventory and check-out inspection reports to help identify changes throughout the tenancy.
When negotiating and proposing settlements at the end of the tenancy it is important for everyone to understand that the landlord or agent is not entitled to compensation which will lead to the property being improved at the tenant’s expense. Whatever settlement amount is proposed must be reasonable and relative to the damage the tenant has caused and must consider fair wear and tear.
Suzy Hershman, Resolution Department Lead at mydeposits, offers help to landlords and agents with understanding and assessing fair wear and tear using certain criteria – read our guide, ‘Wear and tear- what is fair?’ for more information.
When the damage is more than wear and tear, negotiation will be the next step.
