As a tenancy nears its end, either party has the option to ask for a renewal or outright termination. If either party chooses the latter option; as a landlord, you may need to provide the tenant with a move-out letter.
A move-out letter will help you lay out your expectations before going your separate ways. This is important to ensure that the separation is amicable and on good terms.
On your part as a landlord, it’ll ensure that the tenant leaves the unit in good condition. And as a result, this can help you rent it out quickly after the tenant moves out, reducing the vacancy period.
On the tenant’s part, the move-out letter can help them know what exactly they need to do to get their deposit back.
The following is everything you need to know about move-out letters. Keep reading to learn more!
What Is a Move-Out Letter?
This is a formal communication a landlord may have to make to their tenant before the lease expires.
It essentially communicates the move-out procedures, including the exact actions a tenant must take before leaving. Including, in what condition to leave the property and when they must have moved out.
Some states mandate landlords to provide tenants with move-out letters, while others don’t. Including tenant screening processes alongside move-out letters can serve a crucial purpose in minimizing potential conflicts and misunderstandings.
These steps help ensure clear communication and set expectations for both incoming and outgoing tenants.
The following are some of the benefits of providing tenants with move-out letters before they leave.
- Set out the landlord’s expectations: It allows landlords to specifically outline what they would like the tenant to do before moving out. For example, clean the property, take out any garbage, and fix issues the tenant may be responsible for. This ensures that any miscommunications are cut down.
- Ensure the tenant leaves on good terms: A proper move-out letter ensures clarity and minimizes potential areas for conflicts or misunderstandings.
- Serve as a formal ‘thank-you’ to the tenant: If you’ve had a great tenant, you can use the letter to express your gratitude to the tenant for their time in the property.
- Can allow the tenant time to fix issues: Since a move-out letter is sent a few weeks before the tenant’s expected move-out date, this gives the tenant time to make any necessary fixes. For instance, deep clean the property, repair any damage, transfer utilities, and even change the address.
- Simplify tenant turnover: Tenant turnover can be stressful, costly, and time-consuming. If the tenant leaves the property as per the requirements of the move-out letter, then it may simplify your re-renting experience.
To enjoy these benefits, however, you must draft the letter properly. Ideally, for starters, consider hiring an experienced property manager.
They will ensure that the letter is not only detailed, but also compliant with both the local laws and the lease terms.
Tips on Writing a Proper Move-Out Letter
Move-out letters should be bespoke and contain certain basic information. The following is what to include in the letter to minimize potential conflicts or misunderstandings.
- Date and method of delivery. Date the letter for record-keeping purposes and use a reliable method of delivery. Such as, directly delivering it to the tenant in person or by using mailing services.
- Your contact information. This should include details such as your first and last name, phone number, and email address. The tenant can use these to get in touch with you for any clarification they might need.
- The effective date of moving out. This is especially essential in a periodic tenancy, where the move-out date may not be as clear as in a fixed-term lease. This can help you avoid having to deal with tenant holdover issues.
- Details of the final inspection. If you’re planning to do a final walk-through inspection, let the tenant know as well. Provide them with a date and time of the inspection.
- Explain the instructions the tenant must follow regarding keys. Specifically, the return of all keys including all spares, the deadline for return, and the method of return.
When Should Landlords Send a Move-Out Letter?
Before terminating a lease agreement, tenants have a right to an advance notice. In North Carolina, you must provide the tenant with an advance notice depending on the frequency of rent payment.
Is an Eviction Notice Different from a Move-Out Letter?
Unlike a move-out letter, an eviction notice is meant to terminate a tenancy before its expiry. For a landlord to send the tenant an eviction notice, a violation must have occurred.
The tenant must have done any of the following things.
- Failed to pay rent on time.
- Engaged in criminal activity while at the property.
- Caused excessive property damage.
- Overstayed their lease.
For any of these violations, the landlord must use the appropriate eviction notice.
For example, to evict a tenant for failing to pay rent in North Carolina, the landlord must send them a 10-Day Notice to Quit. This will give the tenant up to 10 days to either pay the due rent or move out.
The landlord can then pursue the court process if the tenant fails to do so within the notice period.
Conclusion
Move-out letters are essential for a smooth transition process. However, the letter will only be effective if it contains the right information and is legally compliant.
If you are unsure of how to do this on your own, get in touch with Mark Thomas Properties Property Management.
Our specialty is in providing rental property owners in Durham, NC, with full-service property management services. Get in touch to know how we can help!
