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Anya K.
  • Investor
  • Rochester, NY
27
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66
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Non refundable cleaning fee upon move out

Anya K.
  • Investor
  • Rochester, NY
Posted

Hi BP community,

Is anyone charging a non refundable cleaning fee at end of lease or taking one out of the deposit? I am thinking of writing one into my lease. That way at the end of the lease I can line someone up ahead of time to come and clean to our standards instead of scrambling to find someone last minute if the apartment is left dirty (we usually have one day turnover). I currently provide the tenants who are moving out with a cleaning checklist and settlement charges for items left dirty. Even with high fees for cleaning, tenants still don't thoroughly clean. Most don't own vacuum or even a broom!!! Not only that, but they sometimes use the wrong products and end up ruining surfaces. With a cleaning fee, all they have to worry about is getting their stuff out by set time. Anyone have advice?

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Max T.
  • Investor
  • Philadelphia, PA
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Max T.
  • Investor
  • Philadelphia, PA
Replied

Sounds good - just guarantees that they wont clean upon move out. But if that is built in to your model and works for you... go for it!

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Max T.
  • Investor
  • Philadelphia, PA
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Max T.
  • Investor
  • Philadelphia, PA
Replied

Sounds good - just guarantees that they wont clean upon move out. But if that is built in to your model and works for you... go for it!

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Anya K.
  • Investor
  • Rochester, NY
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Anya K.
  • Investor
  • Rochester, NY
Replied

Thank you @Max T. :)

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Deanna McCormick
  • Minneapolis, MN
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Deanna McCormick
  • Minneapolis, MN
Replied

So if you charge a flat cleaning fee, then aren't you then letting the tenant off the hook for cleaning,, 

I personally rather charge what I can for the cleaning.

I do a walk thru for tenants a few days before so they know what I'm going to charge if they don't clean. and believe me it helps,, i'd much rather have them clean then me or my workers. 

I'm not sure I'd call it a nonrefundable cleaning fee,, I'd call it a move in fee. then it's not related to any type of cleaning for the apartment. Try it if it new applicants don't agree they won't rent. 

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Wesley W.
  • Rental Property Investor
  • The Vampire State
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Wesley W.
  • Rental Property Investor
  • The Vampire State
Replied

I charge a $100 fee.  In addition, I have a very detailed move-out charge sheet (issued upon lease signing/move in) that also charges for lack of "broom swept" condition.  In the lease I also have an itemized list of cleaning tasks to be completed upon move out; this corroborates with the move-out charge sheet.

Since I issue only MTM leases, the non-refundable fee also allows me to absorb costs of turnovers based on the tenant's length of residency.  If they move out in 3 months, it helps me defray those unexpected turnover costs;  if they stay for years, that $100 is amortized over the length of their tenancy.

I instituted this fee because, as some have mentioned, tenants' idea of clean is different from mine.  I was finding that I was still needing to clean quite a bit after a tenant move-out.  That being said, on very rare occasions if the tenant cleans to a "move-in" standard, I waive the fee.

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Anya K.
  • Investor
  • Rochester, NY
27
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Anya K.
  • Investor
  • Rochester, NY
Replied

Yes @Deanna McCormick, tenant would be off the hook for cleaning at move out. I would explain to them at move in that say $200 of their security deposit is allocated for cleaning service to clean after they move out. I would say thus far only about 10% of tenants do a superb cleaning job. 90% of time its a poor job and things need to be additionally clean. This is after I do walk throughs, tell them what to clean, give them checklists and settlement charges guide. They either run out of time or just don't know how to clean correctly. Just the other day a tenant moved out and as I was there checking him out, I was pointing out all the things still needed cleaning. He said he spent an hour on all floors. Guess what, there were still crumbs and dirt all over the place. 

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Anya K.
  • Investor
  • Rochester, NY
27
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Anya K.
  • Investor
  • Rochester, NY
Replied

Thank you for the feedback @Wesley W.!

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Kim Meredith Hampton
  • Real Estate Broker
  • St Petersburg
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Kim Meredith Hampton
  • Real Estate Broker
  • St Petersburg
Replied

@Anya K. I do have a non refundable "market" rate cleaning fee, as well as a non refundable carpet cleaning fee, which is also market rate, it is explained to them in their lease, on a video and again when they give notice to vacate 

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Deanna McCormick
  • Minneapolis, MN
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Deanna McCormick
  • Minneapolis, MN
Replied

@Anya K.  You need to review your state landlord tenant laws.. 

I would CAUTION  that I wouldn't confuse $200 off automatically off a security deposit for cleaning. 

Your looking at a glass that's now half full instead of half empty.

Make it a separate fee, in addition to security deposit. Keep them separate. Is my recommendation. 

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Anya K.
  • Investor
  • Rochester, NY
27
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66
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Anya K.
  • Investor
  • Rochester, NY
Replied

Thank you @Deanna McCormick! Will do a separate fee.

@Kim Meredith Hampton, I will have a cleaning service give me a quote and make sure it is reasonable and "market." You mentioned a video, is that something to move out related that you send to everyone?

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Jeff B.
  • Buy & Hold Owner
  • Redlands, CA
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Jeff B.
  • Buy & Hold Owner
  • Redlands, CA
Replied

In Calif, cleaning fees can not be taken from the deposit.  If you elect to charge such a fee, it would be necessary to include that in your lease.

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Kelly N.
  • Investor
  • SE, MI
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Kelly N.
  • Investor
  • SE, MI
Replied

We've looked at doing this, but as others have said it leaves the door open to the tenant leaving the unit trashed when they leave.

For us, the best approach has been to give them a clean unit when they move in, and before they move out a clear list of expectations.  I typically mail that out 2 months before the end of the lease, with a reminder notice 2 weeks or so before they move out.  I offer to do a walk through ahead of time to let them know what else they might to do, leaving enough time for them to complete the cleaning before they move.  I still have to clean a little- namely moving fridges and stoves to clean under and behind them- but the amount I have to do has greatly decreased with this approach.

That being said, the vast majority of the nasty clean ups we've had to do came from inherited tenants who all claimed the unit was nasty when they moved in.  So some of this may just be better screening tactics than what the previous landlords used and also that they start with a clean apartment...  Around here it is common practice for some landlords to have a lease end at noon and the next one start at noon ON THE SAME DAY.  I find leaving at least a day or two in between really helps.

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David Faulkner
  • Investor
  • Orange County, CA
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David Faulkner
  • Investor
  • Orange County, CA
Replied

Keep receipts to prove that not only you spent that deposit money to have the unit professionally cleaned after the tenant moved out, but also one to prove that it was professionally cleaned before they moved in. In other words, it needs to be a legitimate, verifiable business expense that you can prove if ever questioned on it.

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Marian Smith
  • Real Estate Investor
  • Williamson County, TX
961
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Marian Smith
  • Real Estate Investor
  • Williamson County, TX
Replied

my daughter's condo required a receipt of a professional maid service and provided a checklist for her to give whomever she hired...college area property, but I think more are going in that direction.

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Thomas Williamson
  • Investor
  • atlanta , GA
148
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287
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Thomas Williamson
  • Investor
  • atlanta , GA
Replied

I stopped taking deposits a few years ago, and charge a non-refundable "cleaning and maintenance fee."  The fee depends on the type of house and the amount of rent we collect.

It's usually around 600-700 flat non-refundable fee.  I advertise the property that way, and tell people up front you will not get this money back, it's non-refundable.  The lease also states that.  I got tired of going back and forth with people about this issue, and I don't care how good someone cleans, I still have to go in and clean and at the very minimum touch up the paint.  That cost me, so I pass that along to the tenant.  

No deposits to keep up with, I get paid to turn a unit over, it works out great.  I know some are going to say, "What happens if they skip out and you don't have a deposit to cover the rent?"  We conduct such a hardcore background check on all tenants, that just doesn't happen.  Our tenant's stay for years.  

Don't get me wrong, I got burned plenty in the beginning, but everything seems to always come back to tenant screening.  System works great, and BTW, I don't charge late fees and I let my tenants split their rent payments each month.  Pay the first half by the 15th, and the second half by they end of the month.  All headaches, hassle, and stress with being a landlord just disappeared.  

User Stats

66
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Anya K.
  • Investor
  • Rochester, NY
27
Votes |
66
Posts
Anya K.
  • Investor
  • Rochester, NY
Replied

That is very interesting @Thomas Williamson. I have never heard of your approach. Our properties are in A neighborhoods and historically all our tenants have been great (once we had some issues with someone we knew and rented to...never again). In the 5 years and 19 units, I only ever had to deduct for cleaning. Perhaps security deposit for a $800/month unit can be reduced to $700 but an additional $100 can be required for a non refundable cleaning/maintenance fee collected along with security deposit. Thank you for sharing!