Why Rental Property Owners Should Create a Move-In Checklist

Why Rental Property Owners Should Create a Move-In Checklist

Just by renting out a property, it seems like it would be a pretty straightforward affair. But, of course, it rarely is. Soon enough, the first dispute arises. A tenant is convinced that the cracks in the bathroom tiles were already there. You are equally convinced that they were not. And so each of you is left with no evidence to back up your side of the story. The result is often a long and arduous dispute which could have been avoided if only there had been a little bit of foresight.

Most important to establishing a good rental relationship, getting the move-in process right can save you and your tenants a lot of time and a lot of hassle. There are many simple ways to save yourself and your tenants a lot of time and a lot of hassle but for most rental property owners the simplest of these is the creation of a Move-In Checklist.

Why the Move-In Moment Matters So Much

The condition of your rental property when your tenant moves in to rent it is the standard for the deterioration of the rental property for the entire time that your tenant rents it. If you do not have a recorded and photographed description of the rental property when your tenant moves in to rent it then you will be forced to rely on your memory to try to establish the level of deterioration of the rental property when your tenant moves out. That method of establishing the level of deterioration of a rental property is far from ideal, and is not fair to either you or your tenant.

Recording a property's condition at move-in is essential as the property's current state will serve as a reference when the tenant is due to move out. Most disagreements that occur upon a tenant's departure will arise due to a landlord or tenant disputing damage that existed at the commencement of the tenancy.

For instance, a tenant could say that he found existing damage to a bathroom tile and that subsequent damage caused by him was a result of the tenant being careless due to the poorly fixed tile. Neither side will have any evidence of the condition at move-in if there is no list created.

As such, recording all the property's current characteristics before the new tenant has even brought in any of his own belongings can aid in preventing avoidable disagreement further down the line and, ultimately, save a lot of wasted time that could be better spent managing your other rental properties.

Documentation of a property's condition at the beginning of a tenancy is one of the most effective methods to prevent problems with security deposits during the end of tenancy, according to HUD.

What a Good Move-In Checklist Covers

A good check list is a room by room guide of all surfaces, fixtures and systems in a home. It can be a written document with photos as supporting evidence or even a video of a walk-through of the entire home.

Here's what to include:

●      Walls, ceilings and floors: Look for scratches, stains, cracks or wear of any kind on walls, ceilings and all floor surfaces.

●      Doors and windows: Are all of the doors and windows opening, closing and locking properly?

●      Appliances: Test the oven, refrigerator, dishwasher, washer, and dryer if included

●      Plumbing: Run faucets, flush toilets, and check under sinks for any existing leaks.

●      HVAC system: Note if heating and cooling are working properly, plus note condition of filters.

●      All Electrical Outlets and Fixtures: Flip the switch to ensure that the outlet receives power.  Plug in a test appliance such as a lamp to check for proper function.

●      Exterior: Photographs of the exterior of the home as well as any items that exist in the yard (patio sets, hot tubs, outdoor kitchens, etc.) Take particular notice of any damage to fences. Photographs of all of the outdoor lighting and hose bibs.

We like to have clear, dated photos of everything worth noting. A video of the whole property would be better. A check list to fill out room by room is a good starting point. Then have the inspector upload their findings to a property management software or other online repository.

The Safety Items You Can't Skip

Safety checks are important to document in a tenant walk-through before they move in. Many states require a landlord to check safety items in a home before a tenant can move in. Items such as smoke and carbon monoxide detectors, fire extinguishers, window locks, door locks, and other safety items need to be checked and documented for the tenant's file before they move in. It is also a good idea to take pictures and videos as well to document items found during the safety check.

Review of safety items such as locking of windows, deadbolts, and exterior lighting for proper function as a tenant who feels safe will be a great tenant and take good care of rental property.

How This Reduces Maintenance Requests

When you go through a property prior to tenant move-in, you find most repair issues before they become cost issues. These are items such as leaking faucet, loose cabinet hinge, inadequate functioning exhaust fan in the bathroom, etc. The owner/manager addresses these issues in advance to give the new tenant a quality home. This results in fewer maintenance service requests in the early weeks of the tenancy. The first impression that a quality home gives a tenant can result in better tenant care and longer tenancy.

The Joint Center for Housing Studies at Harvard University conducted research and found that tenant satisfaction at the time of move-in determines the number of maintenance requests and amount of conflict a tenant will have throughout their tenancy.

How a Property Management Company Can Help

The above list of items to check can be time consuming, especially for larger properties. Owners of multiple rental properties or those with limited time to devote to managing their investment may find it is more cost effective to hire a property management company to handle the move in process for them.

Professional property management companies typically follow a standardized move-in process for every property. They use the same checklist and documentation each time, giving owners peace of mind that everything has been completed properly and on schedule.

Make It a Habit

You may get one chance to do a walkthrough for a particular tenancy. Make it count. Use the same form for every tenant move-in and develop the process to become second nature to you. The more you use a move-in checklist, the better you will do in the long run. By documenting every detail about a unit and its contents each time a new tenancy begins, you will develop a paper trail that can prove to be invaluable if something ever goes wrong.

Create a checklist in a template (e.g. Word, Excel) that can be filled in year after year for each property, modified as necessary for new appliances, renovations, etc. Schedule this process as you would any other aspect of your business and complete it in a timely fashion.

The landlord-tenant relationship begins when a person gets the keys to the house. By documenting the property when a new tenant is given the keys it begins in the best way possible. It will save you a lot of time down the road when questions do arise about something in the house.