Today, I received the following e-mail from a reader:

…dig your web site. any advice on how to make sure tenants move their
stuff out very promptly on changeover day? their lease expires at
midnight on 8/31, but i’m going to let them walk out the door the next
morning. what kind of penalty or threat do you impose for tenants
that are not packed up and end up moving out late in day instead of
first thing in the morning?”

Great question (and one I’ve dealt with in many different ways…). Here is some suggestions that my fellow landlords may wish to consider:

(1) The “Good Guy” Approach:

I’ve gone so far as to pay one of my “handymen” with a truck $50-$75 for 2-3 hours of his time (ie. $25/hr cash) to help the tenant move out (as most of my tenants stay in the area anyways). I tell the tenant that if they want help, then they have to have everything boxed up and ready to go by 10 am on “moving day”. I also tell the tenant that the property must be “swept clean” upon move-out in order to take advantage of this special offer…

(2) The “Tough Guy” Approach:

I’ve sent letters to tenants warning them that if they move out “late”, I will be deducting $$$ from their security deposit at a rate of 150% of the daily rent, starting 1 minute past midnight. I am able to do this because I add a clause to all my leases that reads:

23. HOLDING OVER. If Tenant holds over beyond the Expiration Date, even if only for one (1) day, and if Landlord accepts Tenant’s tender of rent, which rent shall be in the amount of 150% of the monthly rent reserved under this Lease, then the tenancy shall continue from month to month in the absence of a written agreement to the contrary, subject to the same terms, conditions, rights, rules and obligations set forth in this Lease. If tenancy is on a month to month basis, Landlord may increase rent upon thirty (30) days written notice. Landlord shall not be obligated to enter into a new lease with Tenant or agree to a continuation of possession on a month-to-month basis.

Note that I do not try to upset the tenant too much, since I would rather them move out “late” than cause unwanted damage to my rental property.

(3) The “Typical” Approach:

Typically, I contact my tenants who are moving out the day before, and set a time for us to meet in order to do a “walk-thru”. I bring the Move-in/Move-out Checklist, and fill it out (with my tenant), so that there are no disagreements if / when I make deductions from the Security Deposit. If the tenant is not moved out on time or chooses not to meet with me, then I use my own “best judgment” when inspecting my home (and I ALWAYS take pictures of damage). Needless to say, damage is NOT normal wear and tear, like dirty walls, for example. The cost of cleaning a home (like dirty walls) will never hold up in court…

Luke, I hope this helps! Drop me a line anytime you have a question, and don’t forget to subscribe to my website at www.TheRichSlumlord.com to get Free Tips and other “Stuff” when I send it out to my subscribers!

Good Luck!

The Rich Slumlord
TheRichSlumlord@gmail.com