When a house owner or Tenant decides to terminate the rental agreement, it starts the move-out process. Usually, everyone wants to complete the process quickly. Owners want the next Tenant as soon as possible to keep the cash flowing. It is very important, particularly if the owner has more than one property. If you are a property manager, here we have few tips which can help you to make a move-out process easier and simpler.
Communicate with the Tenant beforehand: you should start discussing the lease renewal well before time. Sometimes tenants do not want to say due to their reason, and sometimes they are not eligible for the renewal due to financial problems. If you already know that tenants are not ready for renewal, you can list your property for the next agreement as soon as possible. You can make a list of Tenants who are eligible for renewal and those who will be leaving. You can also use appropriate software for this purpose. You cannot forget the owner's intent; communicate with him about the status of tenants. You can make an online portal for the tenants, making the process quicker and easier for them.
Refer your Tenants to other brokers: if tenants want to move out, you can use their move to your advantage. Refer them to other brokers and make some money. It will strengthen your relationship with other managers working in the market. There is software that can help you to keep a record of your referrals.
Manage the lease termination process: When a lease is terminating, you have to follow the process mentioned in the local laws. There are different laws in different states and provinces, so make sure you follow them. Notify your Tenant about the lease termination at the appropriate time according to the laws and regulations. Renewal notices are usually sent within a specific time. You can use automated emails for this purpose. However, get approval from the lawyer before you send these official emails. You can keep the records like the date of the notice, the reason for leaving, and the move-out date with software help. Once the move-out process starts, use the online portal to track the record of key dates.
Get Ready for move out: Once you give the move-out date to your Tenant, you have to make some preparations. Your preparation should be based on the following points.
- Inspection: Pre-move-out inspection is very important. Inspect the place and make a report mentioning damages and other details. The owner and Tenant both will get a copy of the report. Many inspection software is also available these days. Tenants will know about the damage and how much money will be deducted from their security deposits.
- On the other hand, owners will know about the money required for repairing and other services. Moreover, you can use the same report to access the market value of your property, and you can list it inappropriate category. You can do some renovations to increase the amount of rent.
- Maintenance: With the help of an inspection report, you can determine the maintenance tasks and hire the required technicians for them. You can talk to the tenants if they want the maintenance work in their presence and get the remaining security deposit before they leave. If they are already moving out, you can keep the invoices as proof of maintenance for tenets and house owners. Follow Up: During all these inspection trips and maintenance work, you must communicate with both owners and rentals. Therefore, everyone should know the present situation and when the work will complete.
Get legal possession of the property: When everything is done and tenets are ready to leave, as a property manager, you have to sign an agreement that you can take the passion of property. Then, get the keys and end the lease formally. Next, you have to check the remote of devices and make sure you have possession of everything required. Finally, you can use software to keep a record of all the things.
Use technology to support maintenance procedure: maintenance is a very important process. The more time it will take, the more time your home will remain empty, and there will be nothing but the loss of money. Using software can help you record the cost and the time required for a particular maintenance job. It can help you to complete the maintenance process in a short time.
Be clear about the security deposits: You have to keep your lawyer in the picture when it comes to security deposits. Make sure all the money-related things are done according to the laws. Keep the documents complete and decide with the Tenant when he will receive the money and how he wants his money back.
Track Key performance indicators: if you want to keep the move-out process simple and error-free, the following few key performance indicators can help you.
- Vacate notifications: keep the record of vacating notifications sent to tenants.
- Referral record: If you have referred tenants to other companies, keep the record.
- Reason to terminate lease: it’s important to keep the record that why a particular lease was terminated.
- Move out an inspection: keep a record of pre-move-out and move-out inspection concerning the dates it was done.
- Plan move out: Plan moves out every month.
- Pending security deposit: keep records of the security deposits. Record the names of those tenants who got their security back and others who have pending dues.
- Ready for listing: keep the record of which properties are already listed and not ready yet. It will help you to speed up the move-out process.
If you complete the move-out process for every Tenant in time, it will save your time, and you will not face problems in cash flow. The above tips can help you manage the whole process with ease, and you will be able to complete it in time.