Practical Tips & Paperless Guide Video
Performing check-outs can be stressful. This article is packed with useful hints and tips to help you avoid getting stung (sorry couldn’t resist that one). As the saying goes “Prevention is better than cure” – so having measures in place to avoid disputes and communicate well with your tenants is vital.
Should I carry out a pre-checkout visit?
^ We asked an ARLA registered letting agent with over 25 years of experience this question. Here’s what she said:
There are advantages and disadvantages with pre-check out visits. Sometimes it depends on how long the tenant has been in occupation and the expectations of the landlord, tenant and agent. If routine property inspections have taken place regularly it is usually easier to access the state and condition of the property over time.
As soon as notice is received from either side, the check-out will usually be either a month or two months away. If the property is to be re-let and new tenants expect to move in quite quickly, adequate time needs to be allowed between tenants for cleaning, gardening, decoration etc. Although financially everyone involved wants the property to be occupied as soon as possible, but this is a good opportunity to undertake maintenance work whilst the property is empty. Adequate time needs to be given so that the inventory can be updated, if this is diluted the next check-out could have issues.
Pre-checkout clear expectations…
In my experience, disputes can be avoided by giving the tenants clear instructions on how you expect the property to be left, and the information you require when they vacate. Often tenants do not give enough thought to the practicalities such as allowing adequate time or renting a big enough van to take all their belongings away!
The system of sending “Check out Guidance Notes” to tenants is a huge advantage, and will streamline the check out. This needs to be in list form with tick boxes, highlighting everything (possibly three pages long) to include:- emptying dustbins, cleaning, all furniture needs to be put back in the appropriate rooms, defrost freezer, windows, gardening and removing all of their belongings and cancelling the standing order to pay rent. This generates more work for the agent, particularly if it gets paid out to the landlord accidently. Tenants often leave a fridge, or a sofa, but this then becomes your problem to resolve, especially at check out stage, because the keys are taken off the tenant and access to the premises is no longer allowed.
Make it clear in the “Check out notes” that not adhering to the requirements will mean that the security deposit may not be returned to them in full. It is always a good idea to send with a covering letter or email so that you have proof that this document has been sent to the tenant. You may have to remind the tenant that they have had this document if there is a dispute. The assessor would need evidence that the tenants received this document. If a tenant has had a pet in the property, it is good practice to remind them that all the carpets require professional cleaning (if this has been agreed with the tenant). Giving them a selection of companies/phone numbers you recommend also helps, ideally this needs to be carried out prior to the check out so that there is adequate heating/ventilation to dry carpets.
Reviewing the original inventory…
The tenant should have a copy of the original inventory and this should be comprehensive in both text and photographs to prove the state and condition at the beginning of the tenancy. The tenant has an obligation to review the inventory to ensure that the property is handed back in the same condition.
Sometimes it is easier to have the tenant present for the check out. Even with the best inventory in the world, there will still be differences of opinion over what constitutes fair wear and tear.
Pro’s and Con’s with pre-check outs
Advantages
- If a tenant requires a pre-check and there is a decorating issue for example you would be able to confirm:- “Yes, the bedroom does need repainted to a professional standard”. This work can be undertaken in readiness for the check out. Hence this would save time, it would be cheaper for the tenant and quotations for this work would not be required.
- A tenant has extra time to get items resolved, as no access will be allowed after the check out.
- If the property is not to an acceptable standard and there are new tenants moving in, this does give you the opportunity to speak to the landlord and the in-going tenant.
Disadvantages
- A tenant may hide any possible problems, and may not be totally honest with you – until the property is completely empty it is difficult to assess.
- The tenant may hold you to every word. If you have not noticed something which becomes an issue they may complain.
- Any work identified to the tenant may not be carried out to the standard required and this is awkward going back to the tenant. This can cause disputes.
- It has been known that tenants do not carry out work identified or not to the right standard.
- Is it really necessary to have two appointments, as the landlord will only be paying for the check out (if managed by an agent).
- Personal belongings can hide a multitude of sins.
The check-out is an extremely difficult part of an agent/landlords role, everything possible needs to be undertaken to avoid unhappy landlords and tenants, and unnecessary work. A clear Assured Shorthold Tenancy is required together with a high standard of Inventory from the beginning of the tenancy. Disputes and taking issues to the Arbitration Team need to be avoided at all costs.
How to handle check-outs with or without the tenant being present?
Undertaking a check out needs detail, concentration and the appropriate time to complete it. If a property is furnished ideally two people need to do the appointment, so that mattresses can be turned, cutlery/crockery can be checked and furniture items can be moved and checked.
A “Check Out” falls into TEN Categories:-
1. Receive and check keys, confirm alarm code. Receive any carpet cleaning receipts confirming work has been carried out.
2. Forwarding address for the Tenant and contact details. Not to agents: Be very careful not to send this information to the landlord with tenant consent – it could breach Data Protection. Written (express authority) consent should be sought from the tenant to share this information.
3. Bank details for security deposit to be returned.
4. Meter readings, check which companies supply.
5. Have tenants cancelled rental payments, phone, directed post.
6. Check the Inventory against the property – state and condition.
7. Ask the tenant if they are aware of any issues with the property.
8. Identify any issues which the tenant is responsible for, if not to standard.
9. Identify any issues the Landlord is responsible for eg – ongoing maintenance.
10. Identify any recommendations to the landlord to keep property in good order, decorating or replacing a carpet.
The above can take 30 minutes or four hours depending on the size of the property and the state and condition.
There are advantages and disadvantages having the tenant present when undertaking a check out. It is very easy to get into conversation with a tenant whereby they advise how many times the shower has broken during the tenancy and the boiler broke down and had no hot water!! This is very distracting and awkward and digresses from the report. It is common that tenants leave large items in the property or do not clean properly and assume that because they had no heating/hot water for two days during the tenancy, the landlord should accept this. The two are of course entirely separate and the check out is just the check out. It has been known that the whole family joins the tenant for the appointment and the landlord is also present. This needs to be avoided, when too many people are involved it can be intimidating for the person trying to do the check out with an audience and you will generally not have time to listen to all their comments and opinions. Also, it has been known for tenants to employ distraction tactics to hide damage. To avoid this it can be wise to walk-around the property alone for a few minutes, before going through the check out with the tenant.
If a tenant is present, their knowledge can be helpful and aid the check out so that it can be carried out quickly and calmly. Don’t forget some tenants genuinely will have worked very hard getting the property ready, and want their security deposit back in full.
If a tenant is not present, after the appointment it is always a good idea to telephone them to discuss your findings which is received more favourably that an email to advise that, “cleaning is required”, this helps with negotiating and getting issues resolved and keeping a good relation with them. However, it is always good practice to confirm everything in writing. Don’t forget if a properly is left in immaculate condition a little praise goes a long way. Together with that the fact that the file will be off your desk!!!!!!!
Using Inventory Hive practically
As well as developing software, we understand check out reports on a practical level. First off, it’s important that users know how to download a copy of the report onto their device for use at the property – it’s very simple and much quicker to zoom-in and swipe through a PDF than taking a cumbersome paper copy. Also, we have a range of approaches to getting check out signatures and approval from tenants. To find out how we can replicate or streamline your process, don’t hesitate to get in touch. In the meantime, here’s our simple guide video to using our property inventory app on a practical level:
https://www.youtube.com/watch?v=o0xcoLMC0Ow