Tenant Departure, what is the procedure?

Question

Hello everyone!

The time has come... my first tenant departure.

They are not renewing their annual lease which expires January 31st. Their reason for departing is that they're buying a house but otherwise they have been rock star tenants. I don't think I'll have any issues with them vacating the property in time, but I'm wondering...

Am I supposed to send them an official notice to vacate or anything similar? How do you "officially" resign the lease? Since leases automatically renew upon their expiration unless otherwise disclosed, I want to make sure I'm doing this correctly.

Any advice is greatly appreciated. Thank you so much everybody!

Ps.

I have a move-in move-out check list and plan to walk the property with them on the last day to verify the conditions before returning the security deposit.

Anything else I should bear in mind when it comes to ending this tenant-landlord relationship?

Bjorn Ahlblad · Answer

Tenant should have given you written notice prior to Jan 1 to terminate Jan31 depending on your jurisdiction. Get a notice anyway and if they have been model tenants I would not press the issue. Walk thru is good-you both sign. They give you the keys and you agree to return Security deposit minus any deductions within so many days again depending on local laws. Generally they will require receipts to do an accounting for the % security deposit return. Ask them to do a mail forwarding at the PO and get their new address. That's it! Get the unit ready for rent.

Nathan Gesner · Answer

There is typically no requirement for a tenant to notify you that they plan to leave at the end of the lease. It is best practice that you contact them at least 30 days prior to determine whether they intend to leave or want to renew. That ship has sailed, so make the best of it.

My lease agreement states I am authorized to market the property and schedule showings during the last 30 days of a tenants lease. I don't know what yours says, if anything, but you should contact the tenants and see if they are okay with showing as long as you provide reasonable notice. This will enable you to look for a tenant in advance and reduce your vacancy after turnover. Probably 95% of my tenants allow me to show the property while they still reside there. For the tenants that push back, I let it go because it's not worth the fight. In most cases, I have a new tenant lined up to move in within a week or two of the previous tenant moving out. Sometimes My vacancies are as short as a day or two.

I typically advertise the property as being available 3-7 days after vacancy so I have time to inspect, clean and repair, and prep it for the next tenant.

I provide my tenant with move out instructions. It includes a cleaning guide, instructions for closing utility accounts, how to turn over keys, when they can expect their security deposit back, etc Don't go crazy with this because most tenants will never read it or only give it a short glance. I believe mine is two pages long including the cleaning guide.

Theresa Harris · Answer

I would send them a copy of the move out check list that you plan to use.  I'd also suggest reminding them of what needs to be done-eg carpets professionally cleaned, floors swept, garbage removed, oven cleaned, etc.

Petur Karlsson · Answer

Thank you all for the very constructive feedback!

I took your advice, they've received the move-out notice and check list via Rentredi (virtual paper trail), we successfully listed, toured and signed up new tenants for the apartment already, utilities squared off on my end and communicated to them to square them off on theirs.

Jan 31st they've agreed to do move-out inspection, security deposit will be released less any deductions, by mail and include statement and deduction receipts, within 30 days of the lease termination date.

Feb 15th, the new tenants move in, in between I do turnover and tend to some minor fixes that had been on the schedule.

Getting a $350 boost to the rent too! Funny how real estate challenges often turn out to be blessings and learning opportunities in disguise. Never terminated a lease, and now I could do it in my sleep!

Anything else I'm missing?

Tenant Departure, what is the procedure?

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