The #1 Question Tenants Ask When Vacating: Give Them the #1 Answer
“When will I get my (full) security deposit back?”
This is the #1 Question property managers get asked when tenants vacate. And this is the #1 opportunity to get the house back in the condition you want. Make sure you take it!
Note: This is not a full-proof plan! Some tenants have a completely different view of “clean” after they move out. As in, “Though the carpets are stained now and the walls are marked up, it is in better condition then when we moved in.” I get it: people can be temporarily delusional to further their own interests. As in, “I didn’t know that the McDonald’s coffee would be hot because it didn’t have a warning on the cup, I swear.”
When I hear the #1 Question through property manager ears, it really sounds like they are asking, “What do I need to do to get my full security deposit back as quickly as possible?” Fortunately, that is precisely the question we want them to be asking!
Getting a house back from the tenant in great condition is a win-win-win for all involved:
1. Tenants: They get all of their security deposit back- yeah! I root for all of our tenants to do this.
2. Owners: They get a property that can immediately go back to market and requires minimal cleaning/fix-up costs.
3. Property managers: They don’t have to take a lot of pictures, document repairs, compute repair costs, and then explain the damage costs to the tenants and owners.
So how is getting a house back in great condition facilitated? The bottom line: You get what you ask for! Ask the tenants (in specific terms) what you want them to do so you can give them their full security deposit back. Examples include:
1. Steam clean the carpets after vacating and leave the receipt as proof
2. Put clean air filters in all the vents
3. Clean out all the appliances, drawers, and cabinets
4. Don’t leave any personal items in the house
5. Put new batteries in the CO and smoke detectors
6. Leave all copies of the keys, garage door openers, HOA passes, etc.
7. Fill in wall holes and touch-up paint where appropriate
8. Make sure the landscaping has been trimmed and the grass cut
If expectations are set, then (at least some of) the tenants will follow them. And this will save some of the “I can’t believe how the tenant left the house!” laments. And also cushion the tenant protests if some of their security deposit is held back.
We can’t expect the tenants to leave a home in “good condition”, when we don’t define what “good condition” means to us. It’s a subjective term.
When tenants ask the #1 Question, they are listening very hard to your response. Give them the #1 Answer. Take this opportunity to detail how you want the property left (and providing a check-off sheet in writing is even better!) while they are focused. Then add, “… so depending on how the property is left and how many repair quotes we need, it could take up to 30 days. If it is left in great shape, you could get it in a few days!”
The #1 Question is good; it shows the tenants care. Make sure you volley back the #1 Answer while you have their full attention!
Brett Furniss is the President & Owner of BDF Realty (Charlotte Residential Property Management), the trusted real estate advisor for Charlotte landlords. BDF Realty utilizes their innovative Pod System for exceptional customer service in residential property management, home repairs, and home sales (including Rent-To-Sell) for single-family homes, condos, and town homes in the Charlotte-Metro Area. Contact Us Today!
Learn MoreCharlotte Property Management Weekly: Tenant Stories Often Raise Red Flags
“If you have to ask how much it costs, you can’t afford it.” Maxim of the Wealthy
“If you have to ask for a payment plan for the home’s security deposit, you can’t afford it.” Maxim of the Intelligent
We are approached by potential renters a few times a month with something like the following:
“We love this house! We want to take it! We would call our lives “complete” if we could inhabit this home with our children! We get goose bumps just imagining the daily ingestion of pure beauty that permeates from each nook of this stunning domicile. We have the first month’s rent ready to put down now! Where do we bring it? We will treat this house like our very own with weekly carpet baths and loving dustings!
But… The only problem is that we are a little short on the security deposit. Will the owner accept breaking this payment into 3 months? Let the owners know we are good for it and I will be praying that they be blessed this Sunday at each of the church services we regularly attend.”
Thinking like a property manager, how many red flags come up in this beautiful soliloquy? A few come to my mind:
1. Lack of funds: I dare to call this the number one tenant screening technique; this is the collection of the application fee, pet fee, security deposit, and the first full month’s rent upfront and in full. This really is the number one way to find out if they have cash on hand. If they can pay it, they probably have money. If they can’t, they probably don’t and won’t apply.
2. Offer of the security deposit in a payment plan: This ties into red flag #1, but there is another issue. If they don’t pay it upfront, you are left with absolutely no leverage to get it after they move in. You can’t evict them because they are paying rent. Please don’t take payment plans! I’ve done it a few times (because it seems so easy and the tenants seem so sincere…), but they rarely keep up with them. Moving is always more expensive than they realize and cash was already short. They won’t give you the money simply because they don’t have to. They duped you on the front end and will now avoid your calls and hollow threats.
3. Effusive praise over a rental home: I like it that you like it, but let’s not go overboard. When you tell me that you’re going to take meticulous care of it, that’s great; but I’ve never had a tenant tell me that they were planning to systematically destroy their rental before moving in.
4. I like it that you’re into church: But I wonder why you’re telling me this when you’re applying for a rental home?
Red flags don’t mean you need to wave a white one. Be diligent in your screening process and the right tenant will come along!
Brett Furniss is the President & Owner of BDF Realty (“Charlotte’s Most Innovative Property Management & Investment Company”), and Rent-To-Sell Realty (“When You Need a New Solution to Sell Your Home”) which specialize in rent-to-own (lease options) and rent-to-sell homes. His newest book, A Real Estate Agent’s Complete Guide to Representing Rent-To-Own (Lease Option) Tenants (Delight Clients, Fill Vacant Homes, and Earn $2,250* Upfront! (*Minimum!)
Learn MoreCharlotte Property Management Weekly: When Will Rental Rates Rise?
Which leads to the question we really care about: When can we raise the rents to my properties? In short, soon. Why is that?
Learn MoreCharlotte Property Management Weekly: The Top 3 Reasons Why Good Property Managers Matter More Now (Reason #2)
Traditionally, this could be considered a “lowering” of standards; however, in today’s market, I would argue that it is understanding, collecting, and interpreting tenant data better. Tenant selection has become more of an art and less of a science.
And this makes it much harder!
Learn MoreCharlotte Property Management Weekly: Signs of the Times: Layaway and Rent-To-Own Are Back!
If you owe the bank $100, that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.
(J. Paul Getty)
This can easily be reworded to fit today’s real estate market:
“If you can’t get financing to buy a house, that’s your problem. If millions of people can’t get financed, that’s the home seller’s (and their real estate agent’s!) problem.” (Brett Furniss)
Learn MoreCharlotte Property Management Weekly: It’s All About the Narrative: The Key to Maximizing Your Rent-To-Own Client’s Value
“I can’t sell this couple on anyone. If their financial history was made into a movie, it would be in the “Horror” section. Well, the “Drama” section would fit, too. And with eight kids, it could probably be get into the “Adult Content” section as well… (Charlotte Realtor bemoaning the plight of their rent-to-own client with less than stellar credentials)
Learn MoreRental Pricing by Bernie Madoff
“When I used to rent my property out, we had tenants in it paying $1,495/month. You have it listed for $1,195/month. What’s wrong with you?”
First of all, if things were so rosy in $1,495/month self-management land, I don’t think you would be talking to a property manager. But I already digress…
Learn More“Rental Denial” is costly! And why your daughter may not be as good-looking as you think…
“Rental Denial” is costly! And why your daughter may not be as good-looking as you think…
Learn More