Real Estate Articles » Landlord

Should You Hand Over The Keys Immediately After Your Lease Is Signed?

By: Bill Gray
Submitted: 02:26PM on Wednesday 02 September 2009

Often after a tenant signs the lease, the landlord immediately hands over the keys. At this point, many landlords miss a critical opportunity to gain profit and minimize the risk that the tenant will eventually leave owing money.

In 30-40% of the tenant debt files I review, either the move-in inspection was done poorly, or not done at all. This makes it difficult to accurately document any damages the tenant may cause while he or she lives in your rental. In turn, this makes recovering the repair costs all the more difficult.

Often a landlord will simply hand the tenant a move-in checklist and say, “Let me know if you find anything wrong.” After the lease is signed, the landlord and all tenants who signed the lease must inspect the rental unit together.

With everyone present, it is very important to meticulously inspect and document the entire unit inside and out. Perform the inspection with your new tenant by your side. Do not just let everyone wander around the rental doing their own inspection. Some landlords go as far as using a urine stick to show there are no pet urine stains in the carpet. I encourage you to check for pet urine before move-in, and I highly recommend it upon move-out.

Make sure your move-in/move-out inspection sheet has room to document the condition of every area of your rental. It also must have spaces where you and your tenant sign the checklist both during move-in and move-out.

Take pictures of the general condition of the rental, especially of any area that may be disputed when the tenant moves out. Digital cameras make storing these photos very easy.

By inspecting the rental together and both signing the inspection sheet, you are sending a very clear message to your tenant without speaking the words: "I expect you to take care of my rental unit; if you don't, you will be held accountable."

Before you hand over the keys, perform a detailed move-in inspection with your tenant. You will increase your profit by minimizing the risk of debt when the tenant moves out.