No Move-in Checklist

[Nathan Lapham]

Hey BP,

I am purchasing my first investment property and it’s a duplex with one unit currently occupied. The seller didn’t manage the property well and just informed me he didn’t complete a move-in checklist. The security deposit is only $375 and after walking through the unit there was only a couple of issues he said weren’t there at move in. Crayon on the walls and crack in one of the cabinet doors. How should I handle the situation? Should I walk through and take pictures upon possession and have the tenant complete a move in checklist or is it too late for that now?

The current tenant has only been there since November should I be concerned that the kids are drawing on the walls already? It’s not a large spot but it’s a small 2 foot area.

Thank you!

[Thomas S.]

The condition of the unit is recorded as soon after you take ownership as possible. Tenant damage is based on that point in time going forward. Because you are aware of present damage you can expect more going forward. For this reason, and due to the tenant having a very small deposit, you will need to do quarterly inspections. When you find damage have it repaired and bill the tenant for the costs. You want to have the full deposit in tact for when they move out to cover any damage caused in the last couple of months of their lease.