Most landlords know the importance of conducting move-in and move-out inspections. Some who are new to the business may not and will likely learn the hard way.
The inspection, with documentation is extremely important for all parties. If a problem erupts it will be a battle of he said, she said and landlords often loose in court.
The move-in, move-out inspection is relatively simple. the landlord and tenant walk the property and the tenant notes any items he or she feel are broken, damaged, missing, in need of repair and such. A move-in/move-out form should be used. Several such documents can be found on the internet and downloaded for free or a small fee. In addition, it is considered wise to take pictures and/or video of the premises as well. We'll talk more about that below.
We are told it is important the tenant fill out the form so there is no question of impropriety. They should also sign and date the form. This form is used prior to occupancy and at the end of the lease agreement and can be used by both parties to establish pre-exiting conditions and/or damage during occupancy.
Attorney Andy Hull says the following about using the form:
In an attempt to avoid being sued, or at least to properly defend any lawsuit regarding the deposit, the landlord should always have the move-in/move-out inspection form, the names of the individuals who did the move in/move out inspection, and the supporting documentation (invoices, photographs, vendor statements, etc.)
Today, many landlords take video during the move-in and move-out inspections as a way to document the condition of the property. We are told it is important to date stamp the video and show the property address and unit number at the beginning and end.
Some say the inspection is a CYA thing. We disagree. We feel it is intended to create a clear understanding between parties regarding the condition of the home or apartment. Thus, performing a thorough inspection is simply prudent.
If you have more questions about this process, we recommend you talk to a competent attorney who specializes in landlord/tenant law. In Arizona, we really like the people at Andy Hull's firm and have found them to be quite helpful. They can be reached at 602-230-0088.
We hope this post has been helpful and we truly appreciate you visiting Real Estate Investing 101. Come back often as we update this site on a regular basis.
Ron Urban & Gene Urban
The Urban Team at Realty Executives
602-234-5777
