The “Getting Your Deposit Back” Form

Tenant turnover is one of the costliest aspects of this business.  You have to advertise and re-rent the property.  Most likely you will also have to do some clean up and repairs after the tenant moves out.  One of our most important goals in this business is to get our properties back from tenants in a clean and nearly rent ready condition.

Getting your properties back in a clean and rent ready condition is not impossible.  To do it you need to do three things.  First, collect a security deposit for the property.  Then provide your tenants with a “Receive Your Deposit Back” form upon their move in.  Lastly, provide the same form again when the tenant gives notice that they are going to move out.

The “Receive Your Deposit Back” form states very clearly what the tenant must do to get their deposit back upon move out by listing the costs to clean and repair various items that were clean and working upon move in.  For example, if the tenant does not replace a burned out light bulb, it is going to cost him $15.  If they do not clean out the stove, that will cost them $75.  If they did not feel like vacuuming or sweeping up, that will be $50.  If they leave a bunch of junk, it will cost them $75 per hour to clean it up.  These costs are not made up; they are based upon actual labor and materials charges.

The goal here is not to make money with this form.  I can make more money if I can quickly re-rent my property so I want it returned to me pretty much the way it was when it was rented and I want to give the tenant their deposit back.  By using this form you create the incentive for your tenants to give the property back in a clean and working condition.  Tenants now know that it will cost them if they decide not to clean the stove when they leave for example.  We do allow for “normal wear and tear” such as small nail holes from pictures, scuffed up paint and very minor issues that come from someone living in the property.

This strategy has worked pretty well.  Plus, as an added bonus there are less disputes regarding deposits after move out.  The tenant was provided a list.  They signed the list and they made their choice upon move out, clean or not clean.

You should use such a form to help you get your properties back in a nearly rent ready condition.  To help you get started, you can download a copy of the form I use here.