Move-Out Checklist for Landlords: Inspection to Deposit

A clean move-out has five parts: an inspection with the tenant, deciding what is wear and tear and what is damage, settling final bills and the condo or HOA clearance, returning the keys, and an itemised deposit computation. With photos and everything in writing, the deposit goes back quickly and nobody falls out.

In the Philippines, move-out is where landlord and tenant most often end badly, and the deposit is almost always the reason. Here is the checklist that keeps it fair and legible.

Before move-out day

Do not wait for the last day. A few weeks before the tenant leaves:

• Confirm the exact departure date against the notice period in the contract
• Remind them what condition the unit should be in: clean, no rubbish, nothing left behind
• Tell them whether the condo or subdivision needs a move-out permit or gate pass
• Schedule the inspection with the tenant
• Dig out the move-in photos, the inventory and the contract

The move-out inspection

Do the inspection with the tenant there, so they see what you see. Bring the move-in inventory and walk every room:

1. Walls, ceiling and paint
2. Floors and tiles
3. Doors, windows, locks and screens
4. Bathroom: toilet, sink, shower, taps
5. Kitchen: sink, cabinets, exhaust
6. Lights, outlets and switches
7. Appliances and furniture included in the lease
8. Aircon: does it run, is the filter clean

Take photos and video of each area, dated. Write down what you noticed and have the tenant sign the inspection checklist.

Wear and tear, or damage?

This is the question that decides most deductions.

Ordinary wear and tear is natural ageing from normal use. It is normally not deducted:

• Paint faded or slightly dirty after a few years
• Light scuffing on the floor from walking
• Curtains faded by the sun
• Hinges loosened by ordinary opening and closing

Damage is beyond normal use. It can normally be deducted:

• Holes in the wall from many nails or brackets put up without permission
• Broken glass, tiles or basins
• Stains or burns on the floor or countertop
• Doors or locks broken by force
• Damage caused by pets
• Items missing from the inventory

Does the tenant have to repaint?

It depends on the contract. With nothing written, repainting because of normal ageing after a long tenancy is usually the landlord's cost. But heavy staining, writing on the walls, a repaint in another color without permission, or damaged plaster can fairly be charged.

To avoid the argument, write into the contract what is expected of the paintwork at the end.

Final bills and clearance

Before returning the deposit, make sure nothing is outstanding:

• Electricity and water: take the final meter reading on move-out day, with a photo
• Internet and cable: confirm the tenant's account is disconnected or transferred
• Condo or HOA dues: if they are the tenant's, confirm they are paid up to the last month
• Clearance: many condos issue a move-out clearance once there is no outstanding balance or fine
• Fines: check whether the condo or HOA charged anything for a breach by the tenant

If the final bill has not arrived, you can hold a reasonable part of the deposit when the contract allows it. More in security deposit and advance and in splitting electricity and water.

Keys, and the deposit itself

Keys and access: collect every key including duplicates, plus gate passes, access cards, gate remotes and parking stickers. Record how many were returned on the turnover form and have it signed.

Deposit: produce an itemised list:

• The total deposit held
• Every deduction, with an explanation and an amount
• A receipt or quotation for each repair
• Any holdback for a bill still to arrive
• The balance going back to the tenant

Give the tenant the list and return the balance within the days stated in the contract. Keep proof of the return — a bank transfer record or a signed acknowledgment.

How MagpaUpa helps

MagpaUpa produces a move-out settlement that works through the deposit, the advance, unpaid rent and bills, and every itemised deduction, so the amount going back is plain. Deposit return days and the holdback for final utility bills are set once in your lease terms, and the deposit is tracked as a liability from move-in to move-out. Repairs found during the inspection can be raised as maintenance tickets. Try MagpaUpa.