What is a Tenant Move Out Agreement?
A tenant move out agreement is a written legal document typically drafted to communicate between a tenant and their landlord the outcome of a tenant’s moving out from the property. A tenant move out agreement may record information detailing which items were taken by the tenant when they moved out, which items were left behind, who removed the items left behind, and details about whether the tenant provided notice to the landlord on time, or any other information regarding the tenant’s moving out process .
Although a tenant isn’t required to enter into an agreement with their landlord when moving out, the purpose in entering into such agreements is to have a mutual understanding between the tenant and the landlord about the condition, or conditions, of the property before, during, and after a tenant moves out of the rental premises. For rental assistance (HUD) tenants, entering into a move out agreement with their landlord can also assist the tenant in determining if the landlord ever submitted a request to the housing authority to withhold based upon the tenant’s vacating the property.
Elements of a Move Out Agreement
The essential elements of a move out agreement include an outline of the tenant’s obligations, expectations for the condition of the property, and a detailed timeline for actions to be taken. The following are aspects that should be included:
Put in Writing
The move out agreement should be drafted so that the departing tenant understands their obligations. The tenant should be advised that, upon move out, the unit must be returned to the property owner or manager in the same condition in which it was received, excepting normal wear and tear. Such obligations could range from something as simple as emptying cupboards and closets to having the carpets, floors and furniture professionally cleaned.
Most state laws have language in the statute stating in the event a unit is not left in the same condition as it was first received, other than normal wear and tear, the rental company can charge the tenant for the cost of restoring the unit to the required condition. The move out agreement should make this explicit, while reserving the landlord’s rights provided in the applicable statute.
The move out agreement should also apprise the tenant that if any of the items provided to the property under the lease agreement (appliances, etc.) are missing, damaged, or in a condition which has not been previously noted, the landlord may charge for them. Most applicable statutes require the rental company to make a reasonable effort to warn the tenant that they are responsible for the items and protect their interests.
Timelines
The move out agreement must detail all timelines for the tenant. Expectations in most states are that the unit must be vacated and all items removed no later than 12:00pm on the final day of occupancy, regardless of the termination date of the lease.
The statute in most states clearly defines the timing by which the rental company must provide the itemized listing of deductions from the security deposit. For example, some states require the list to be mailed to the tenant within 30 days of the end of the tenancy. If the tenant fails to do so, the entire deposit must be refunded.
Disputes
If the tenant disputes anything in the itemized deduction listing provided by the rental company, it is up to them to bring it to the company’s attention as soon as possible. For example, if the tenant vacates the unit and claims that the carpets were already dirty when they moved in, the tenant should inform the rental company as soon as possible so that efforts can be taken to research the level of cleanliness of the carpets at the time of the tenant’s move in. Many times, there is no way for a rental company to control the level of dispute provided by the tenant, especially after the tenant has moved out of the unit. But, what the rental company can control, under most statutes, is whether they have made a reasonable effort to resolve any such disputes prior to making any deductions from the security deposit.
Legal Aspects of Move Out Agreements
The legal implications of tenant move out agreements are important to understand for both landlords and tenants. A tenant move out agreement is a legally binding document. While there are potential areas for dispute, the document itself can effectively prevent and resolve most issues.
All rental properties are required by law to provide basic habitability, and therefore tenants cannot request rights or privileges beyond basic habitability. This means that if a property does not have a toilet or running water, or is infested with rodents, etc., the tenant can refuse to pay rent until these issues are fixed. If you provide any other amenities, you are providing an added benefit, and should make it clear to the tenant that these additional benefits are provided at your convenience. For any amenities you provide, you should be explicit in your lease agreement about exactly what is being provided and when. The most common amenities that cause confusion between landlords and tenants are the payment of utilities, laundry on the premises, access to a pool, use of an appliance which does not come with the house, etc.
The most common disputes take place over the issue of security deposits. While there is no law that dictates the amount of the security deposit, a tenancy can be terminated either prior to the move out date or extended beyond the move out date. Tenancy is never "terminable at will," all tenancies are governed by a termination date. So a tenant may occupy the premises until such date, and must continue to pay the agreed upon rent. But if the tenant vacates the premises on February 5th, and the lease provides that the tenancy terminates March 1st, the landlord has no right to withhold any portion of the security deposit to "pro-rate" the value of the premises based on the actual time occupied. The tenant would have no obligation to refund the landlord any money to supplement the security deposit to reflect their actual possession of the property, since they have already vacated the premises, and the tenancy has ended. In that case, the landlord would owe the entire security deposit back to the tenant as of February 5th.
Tenancy may be terminated for several reasons, even when a tenant has not been compliant with the terms of the lease. When a tenancy is terminated, by either the landlord or the tenant, the tenant has an obligation to "quietly obey" the terms of the lease during the duration of the tenancy. The tenant may give proper notice to vacate, however, their quiet possession of the property terminates either on the move out date, or on the next rental payment date, whichever comes first. So in the example above, let’s say the tenancy ends March 1, and the tenant has a tenancy end date of February 20th. The tenant is required to vacate the premises on February 20th, unless they have scheduled for the tenancy to continue until March 1st. In this case, their tenancy continues through the month of February, and the landlord will not have to pro-rate any utilities or rent to the tenant’s account at a later date.
It is important to be aware of the ways in which the lease agreement is legally binding, in favor of both the landlord and the tenant. Tenancy may be terminated early for a number of different reasons based on the parties’ actions. It is helpful to have a tenant move out agreement that sets forth any extensions or limitations to the tenancy after a tenant has given notice to vacate.
How to Draft a Move Out Agreement
To successfully create a tenant move out agreement, landlords and tenants should follow these steps:
Drafting a Move Out Agreement: Your move out contract should be drafted in a way that gives you the best shot of getting your money back. For example, if you are expecting all of your deposit back, the contract should state that. If you expect to have a few items deducted for unpaid rent or damages, it should state that a certain amount will be deducted.
When drafting your contract, consider more than just what is due and what is being returned. Consider what damage may have occurred and how much that damage may cost to repair or replace. For example, if a window is broken, how much would a new window cost? How much would labor cost? Even small amounts can add up when you have to total many different damages, so be specific with your potential deductions.
However, be aware that your move out contract may result in you giving up pertinent rights, such as the right to get your full security deposit and forces you to waive your right to inspect the home before deductions are made. Check your landlord-tenant laws to ensure that you understand the legal enforceability of your contract. In some jurisdictions , contracts waiving your landlord-tenant rights are invalid.
Negotiate Your Contract: Some tenants mistake move out agreements as being firm contracts that cannot be negotiated. The truth is that, except in some limited cases, tenants can and should attempt to negotiate their contracts for a better deal. For example, you may be tempted to sign a move out contract just because you don’t want to risk your landlord going after you later on. However, if your contract states that you waive all rights, and it violates your rights under the law, you have the right to refuse to sign. If you don’t think that you should be responsible for any damages, you can refuse to sign until the contract no longer holds that item. After all, you are not obligated to sign anything.
Get Legal Help: It is always a good idea to get a lawyer involved when drafting an important contract, such as a lease. A lawyer can help you determine if your move out agreement is too one-sided and give you helpful tips about how to get a better deal. Your lawyer can also ensure that your move out contract does not violate your rights under your local landlord-tenant laws.
Common Pitfalls and How to Prevent Them
Common mistakes when preparing tenant move out agreements and how to avoid them
Despite the fact that most landlords know when a tenant is moving out, and in some cases live in the unit while the tenant is packing their things and moving out, I highly recommend not preparing the move out agreement until the tenant has vacated. Even if you know there has been a relationship between you and the tenant for a long time, and you are on good terms, I highly advise to still wait until the tenant is out.
Why? Because after the tenant has moved their belongings out of the unit, once it’s an empty unit, it’s easier for both the landlord and tenant to see what if any work needs to be done to the unit. It’s also easier to ascertain whether or not the landlord can make a claim for damages against the tenant. In addition, we have seen circumstances where the tenant moves all of their personal belongings out, but their friend picks them up late at night and their friend refuses to give them their items back to them. While we do not recommend storing any of the tenant’s items, in this case if the tenant could not get their items back, further discussions may be necessary prior to finalizing the move out agreement.
In addition, we have seen circumstances where just because a tenant has moved out, does not mean they have left the unit in a proper condition. In this case, we have seen tenants take cupboards, windows, doors, curtains and other items found within the unit. Landlords should wait to ensure the tenant leaves the unit in a clean, undamaged condition and all items have been removed by the tenant prior to providing them with the move out agreement.
Another mistake a landlord often makes is not ensuring that they have conducted a comprehensive move in inspection with a Tenant Agreement Addendum signed by the tenant with their signature confirming they agree with the state of the unit. When it comes time to move out, providing a photograph of the unit prior to the tenant moving in makes it much more difficult for the tenant to dispute any damages that the landlord would like to charge against the tenant’s damage deposit.
A move in inspection combined with a tenant agreement addendum should document all possible issues with the rented premises. The more comprehensive the tenant agrees to the state of the unit, the more difficult it becomes for the tenant to dispute whether it is their fault or the landlord’s responsibility to do the repairs. Providing photographs at the move out of any items needing the repair will save time and resources, as a picture is worth a thousand words. Also ensure that when photographs are taken that they are taken with the date stamp on them printed out. If the tenant disputes the photograph and tries to argue that the photo was taken before they moved in, the date stamp will confirm the date.
Sample Tenant Move Out Agreement
A Sample Tenant Move Out Agreement Template might include the following provisions, to best account for any potential security deposit disputes:
- The tenant’s departure date.
- The condition of the premises upon departure.
- What items or damages are to be cleaned/repaired or replaced.
- How and when the landlord may perform repairs and deduct costs for those repairs from the security deposit.
- An itemized list of items given to the tenant to be returned upon departure.
- If the landlord has current possession of certain valuable items, how and when should they be returned to the tenant.
- Outline any landlord actions that may constitute a breach of contract.
- How and when security deposits will be returned.
Basically, the point of a tenant move out agreement is to try to require the tenant to leave the premises with all items to the landlord’s expectations and hand everything over promptly, according to a set timeline, accounting for grace periods under state law. It is also used to try to ensure that the tenant agrees to vacate the premises, and gives the landlord physical access to it to account for any damage or repairs that may be needed. For example, the tenant move out agreement might be done along the following lines:
Tenant Move Out Agreement
This Tenant Move Out Agreement ("Agreement") is made and entered into this _____ day of _________, 20_____, by and between ____________________ ("Landlord") and ____________________ ("Tenant") as a results of Tenant’s termination of the Lease Agreement for the property located at _______________ ("Premises").
1. Tenant’s Departure Date: Tenant agrees to vacate the Premises no later than ___:00 p.m. on______________________ (date). If Tenant fails to leave the kvetch in as good or better condition than the time of taking possession, Landlord may deduct the costs of repairs from Tenant’s Security Deposit. The amount of repairs needed will be assessed based upon estimates collected by Landlord. Tenant understands and agrees to this, and agrees to all repairs and estimates collected by Landlord to his best ability.
2. Premises Condition: Tenant acknowledges that according to section ___(1)(a)(i) of the Lease, Tenant agrees to leave the Premises in the same condition as was present at the time of possession , and understands that attempts after the fact at arguing the opposite may result in eviction, this move-out agreement, and cause this agreement to be null and void.
(a) Tenant agrees to return the following items to the Landlord upon the departure date. All of these items must be returned:
i. A/C Remote (one for each A/C unit)
ii. Manual to any alarm system. (Note that an alarm system is not present at the Premises. If not is installed upon your departure, you may choose to have the service disconnected.)
iii. Cable Remote (one for each cable unit)
iv Refrigerator Key
v. Keys to unit and mailbox. Again, if you opt to change the locks and fail to provide Landlord with keys, you will be responsible to pay for the locks to be changed.
vi. Fire Extinguisher
3. Limitations of Landlord’s Responsibility: (a) Nothing contained in this agreement shall require that Landlord, as a part of his duty to provide possession, prepare, install, obtain, or maintain services, utilities, appliances, or other required conveniences for Tenant. In this regard, no warranty of habitability, habitability, or fitness for a particular purpose is made by Landlord herein. In addition, no warranty or representation is made regarding the condition, repair, habitability, or fitness of the Premises.
(b) No failure of Landlord to exercise, or delay in exercising, any right or remedy hereunder shall operate as a waiver of any breach or default, or any other portion of the requirements of this Agreement, nor shall any single or partial exercise of any right or remedy by Landlord preclude any other or further exercise thereof, or the exercise of any other right or remedy.
4. Acceptance of Agreement: The parties acknowledge their understanding by signing below. Landlord hereby waives the Service of Process to the premises, and understands that the tenant will be vacating the property and vacating the area as of you’re the above date mentioned in #1 above. If at any point tenant has not vacated the premises by that date, the tenant may file with the court a request for a real property eviction, and the landlord consents to vacate the property on or before _____(date).
Landlord Tenant