Move Out Packet - Anybody Trying This?

Just had an idea, and I'm curious if anybody else is doing it! When a resident moves out, the community generally has to clean the carpets and either have someone in-house or an external company do a deep clean of the apartment. But what if you provided this information to your residents in a move-out packet? Tell them that to ensure they get back their full deposit, they must leave the apartment in good condition. And then provide contact information to the carpet cleaning company and the maid service, maybe even with the community discount as a "favor". It may not work very often, but I'm guessing that every so often the moving out resident will have these suppliers come in, which means the resident covers the cost instead of the community.

What do you all think?

I think this could be a good thing on several accounts
1) The tenant gets a far better idea of what things may get deducted from their deposit
2) It gives the tenant a option that makes them feel more empowered.

Even if they don't take opportunity it also gives management a clean way of documenting things that can and will be deducted from the deposit.

Hi There!

We actually provide the tenants with the break down of all the costs from cleaning the carpet, to painting the walls,etc. We have 2 pages of break downs. We provide this to them when they sign their initial lease. We provide them the names of the vendors that we use when they move out if we do have to clean their apartment but if they choose to have the carpet professionally cleaned they can use our preferred vendor & lease us a receipt. This ensures that they get their full deposit back or they are aware up front that there are costs. Our tenants really appreciate this. Some pay for the cleaning services themselves and leave receipts and some just have us take care of it and take it out of their deposit. We don't have any additional explaining to do afterwards because we talk about it during the initial lease signing.

So, how well has this worked out for you? It sounds like a great way to minimize some the issues that can come up regarding deposit refunds.

For a bulk of our properties we stipulate in the lease what must be done. We also send out a friendly reminder at the beginning of the month regarding those requirements. It helps some people but by and large those that do not get all of their security deposit back do not care. They feel entitled to do as they please and then threaten everything under the sun of you do not give them the full refund. It is just part of the business.

People appreciate the break down that we give them. We don't tend to have complaints about it. I think because we're forward about it & have a very detailed breakdown in the lease & prior to move out. It is very open communication. There isn't anything anyone can complain about. They find out up front that either they will pay for shampooing the carpets or it comes out of their deposit. Nothing to buck about it.

When I go into the office tomorrow I will attach the breakdown here for you.

We have Move-Out Instructions that outline what is required and the fees that will be applied if not completed at move-out. The trick is this document is signed at MOVE-IN and attached to the lease documents with the deposit agreement. A signed copy is also provided any time a 10-day notice (or other demand notice) is given. When the Intent to Vacate is received, we acknowledge the intent with a letter and a copy of the SIGNED Move-Out Instructions. This has been very effective in most cases.

I really like the idea of giving a move out packet to the residents that have decided to move! This will help the properties on the turns when they move out. Yes we know that not everyone will care or listen but at least we are making a step towards making changes. If you want you could also have them sign a form that states they received a moveout packet and keep it in their file. This will benefit you when they dont get the extremly low security deposit back and you take them to collections. There is no way they can say well I did not know that, when infact they did because they sign the form excepting the move outpacket with guidelines in.

What a great response! When I started the topic, I was actually thinking it was just a way to lessen turn costs by providing them a way to handle it themselves. But it sounds like it's also a great argument deterrent! I think there are probably some good partnership marketing opportunities in the move-out packet, as well. For example, they might need movers, they might need a Uhaul, they might need boxes, etc. If you went to Uhaul and told them you could get their name and information in front of a sizable audience of the year, I think they would be interested in paying for that exposure...

Absolutely, but also create a way to generate income for the building as well. There are companies creating opportunities for service providers to market to the tenants via your website. The income from the marketing should go to the property bottom line and gives vendors and services in your area a way to reach them. Why not? We have to push the envelope for our clients and as a community you have that audience to deliver, while giving the customers at the ready services. It can include a "yelp" type rating as well so folks see if people are happy or not.
Just a thought. If you are interested I know a PM company owner doing this and I can introduce you to him or brainstorm on an easy peasy way to do it with your own website.
Love this stuff.
Merry Christmas,
Linda Day Harrison, CPM, CCIM
managerlabs.com

We developed a "Move out" packet just short of 1 year ago. It has a "Notice to Vacate Acknowledgement" form that outlines the potential break lease fees, who they must call to handle utilities, etc. We also includes the "Standard Maintenance Charges" notice and a "Move Out Instruction" sheet that describes what must be done in order to increase their return of the Security Deposit. In the time since implementing, I would say it has reduced our unit turn costs and has left little to question on what is to be expected, especially if there are breaklease/re-rental fees associated-so it saves some administrative time as well.

I hope everyone had a great holiday!

Harold West
Regional Property Manager
Brookstone Realty Management

A little off subject... Just as there are potentials for partners in advertising and move-out information, so to is there the same for move-in information (more as a courtesy). I purchased moveinpack.com and moveoutpack.com about 10 years ago.

I envision a multi-pocket advertising/information-filled professionally designed/printed folder (or box including samples) with room for the individual community to include their property information while offering the new or old resident offers for say, home depot, BB&B, cable company, u-haul, etc. with the same information available online. The idea is that local properties would not have to seek coupons or stuff packets any more; they would either be provided or available for a minimal cost.

Imagine the number of people moving-in or out annually, ready to spend money on their-new-place; it's a perfect blend for national and local companies seeking this target market. Thoughts?

Good idea on including the vendor list and coupons Brent. I know we always provided a list of charges at both move-in, when the move-in inspection was completed and again when notice was given. I think the one concern I would have is the need to investigate the landlord tenant laws for your area due to the legal definition of wear and tear and the responsibilities as defined by law for both the tenant (I hate that word) and the landlord (hate that one too). I would just make sure that you aren't implying something that is considered normal wear and tear needs to be rectified and end up in a legal battle. Outside of that, great idea!

We charge a cleaning fee. Tenant pays 1/2 down with first month's rent and the balance over the next 4-5 months depending on the amount. I have found no resistance with this policy. We are very particular, so we would prefer to do the cleaning ourselves.

Linda

I use a move out packet. I put USPS mail change of address forms in it, along with information on transferring utilities, and the cleaning guide lines. I find that if residents know what is expected of them at move out, they will leave happier.

Our properties are in a near-campus environment (i.e., our tenants are mostly college students). Our deposits range from 1/2 to 3/4's of a month's rent. We detail in both our lease and on our tenant web portal what folks should pay particular attention to upon move-out that would help get as much of their deposit back as possible. It has been our experience that residents are more focused on getting out as quickly as possible when the time comes and letting the deposit deductions fall where they may. The take away is that they find it worth their while to suffer the deduction for clean-up. Thankfully, we get very little push-back from our security deposit dispositions.

I tried to upload my cleaning guidelines to the file bank but I keep getting an error message that the file already exists, even though it is not listed. If anyone wants a copy of it, feel free to email me.

(Moderator Note: Feel free to email Rose, but we were able to get her file up on the system: Move Out Cleaning Guide . You may need to be logged in to view/download.)

Rose
[email protected]

Brent,
I have been doing this for years and it's been very helpful in returning Security Deposits. It's very stressful to move. Let's make their move easier and maybe they will refer someone after they leave? Just because someone is moving out doesn't necessarily mean they won't come back. Not only do I provide them with cleaning info but all phone #'s for utility companies as well. We are now using the "Sure Deposit Bond Program". This is where the new client pays a non refundable fee up front when moving in. Therefore when they move out there isn't a security deposit to fall back upon for cleaning charges. The Bond Company reimburses the Property instead. The cleaning guide is even more important in this situation for the Landlord. Also why not include a business card directing them to "apartmentguide.com" when they turn in their keys?


Lauretta Ludwig

Brent,

I actually worked for a company that had the resident sign an addendum at MOVE IN to say they would be cleaning the apartment themselves at move out or they would pay an additional fee of $... for the apartment to be cleaned and shampooed at move out.

Most residents don't want to clean at move out anyway and it helped the management company recoup some of the turn costs.

Holly Stuckey

We incorporated fees related to cleaning and renovations as an optional ancillary service that covered us during the stay and at the time of move-out. The key is to get a signed inspection checklist at the time of lease signing, then making sure to do a walk-through upon move-out notice to give an estimated cost of repairing holes in walls, carpet stains or replacement, etc. It is good preventive maintenance.

Great comments everybody - I love the referral to an ILS as a partnership after they turn in their keys (or give notice).

Someone else hit the nail on the head earlier in this post. The time to share your move-out cleaning expectations is at the time of move in. If you wait until they give you their notice to vacate, the damage is already done. Then they play the "Gee, I didn't know you would charge me for Koolaid and Candle Wax on the carpet" game. Let the residents know up front how you expect them to maintain the property, and you will likely find more compliance and less surprises at the time of move out.