We like to stress the importance of having a good Alberta Tenant Move-Out Checklist. Thorough move-in/move-out inspections are crucial to being efficient in changing tenants.
To make money from a revenue property, you need to keep it occupied as much as possible. During the times your place is rented, you can count on covering the expenses of ownership. When one tenant leaves, the pressure is on to get a new tenant happily settled in quickly, so the property does not sit empty.
Start with a Good Tenant
We know we repeat this often, but the time to ensure the move-out process goes well is when you are screening the tenant in the first place. If you have a good, responsible renter and you do your best to be a conscientious landlord, you should have no significant problems when your business arrangement comes to an end. Happy, responsible tenants are less likely to break their lease, leave unwanted items behind, or necessitate repairs.
Even if you have a great relationship with your tenant, it’s essential to get their intention to move out in writing. We do this with all of our clients’ renters. The reason is simple: on move-out day, you want to prove they intend to move out and when that move-out day is.
Landlord Responsibilities in Alberta
It is costly, not to mention annoying, to deal with a tenant staying past the end of their lease without permission. In addition to giving you less time to clean and make repairs, you will likely lose your next tenant if they can’t move in on the appointed day.
In Alberta, when a tenant stays beyond the date specified, that is called overholding. Yes, the landlord can evict them, but it’s not cheap or easy. Landlords can’t change or alter the locks but must seek civil enforcement. You can find out more about the dispute process at the Alberta Courts website.
Overholding is an excellent reason to get the move-out date in writing and give plenty of notice if you, as the landlord, are initiating the end of the tenancy. Getting the move-out date in writing also makes planning any necessary repairs, cleaning and showing the property to prospective new tenants much more manageable. It can be easier to rent an empty property than a cluttered one if your current tenant isn’t much of a housekeeper.
Settling the Finances
In many jurisdictions, including Alberta, landlords must prorate their tenant’s last month’s rent if they intend to bring in a new tenant before the end of the previous tenants’ notice period. Prorating means dividing the total rent amount by the number of days in the month and only charging your tenant for the days they occupy.
If your tenant moves out on time, you’re in better shape than if they opt not to move out on time, but there are still a few aspects of the process that can trip you up. First, landlords must do a move-out inspection within seven days of the tenant vacating the process, but the best practice is to do it with the tenant on the day that they turn over the keys. This way, everyone is on the same page about what to expect from the deposit and whether the property was returned satisfactorally to the landlord. To make matters easier, we have found it helpful to provide tenants with move-out guidelines.
From there, the landlord has ten days to provide what is called a statement of account to the tenant, which is a record of the original security deposit, amount of interest accrued over the tenancy, and an itemized list of planned deductions from the deposit. This can include damage to the property, outstanding amounts owed by the tenant, and any unpaid rent.
From there, the landlord has 30 days to finalize any outstanding bills, complete work that was to be charged from the deposit, and then send a final statement with the balance of the deposit (if applicable). The key here: the work must be done and paid for within 30 days of the first statement in order for it to be charged against the deposit.
Many small landlords believe it’s reasonable to withhold the damage deposit for unpaid rent. This is true; however, you can’t just keep the money and call it a day. You must inform your tenant through a document called a statement of account.
A statement of account is a record of the original security deposit, the amount of interest accrued over the period of tenancy, and an itemized list of planned deductions. The reason it’s a list of planned deductions is because the landlord has only seven days to do a walk-through inspection of the property after the move-out date, and then they have ten days to provide the statement of account. However, the landlord has 30 days to return the security deposit, so if they discover damage they didn’t spot during the inspection, they have some recourse.
Alberta Tenant Move Out Checklist
You may have noticed a theme here. Be optimistic, but get everything in writing. We hope you will have no problems transitioning between two tenants, but if something goes wrong, you want to protect yourself.
Alberta landlord-tenant law requires both a move-in and move-out inspection. Another reason is that you can’t collect any money from the damage deposit for repairs unless you have the inspection reports to prove the necessity.
We have a great, free Alberta move-in and move-out inspection form. We use this form with all of our clients’ tenants to protect our clients, and we’re making it available for free as a public service.
We recommend you complete the walk-through with the tenant slowly and methodically. A detailed inspection helps mitigate any misunderstandings and sets expectations when moving in. This extra effort makes the move-out process smoother and faster. Once you’ve completed the move-out check, inform the tenant when you expect to return any security deposit money, and ask them how you should get it to them.
Getting a New Tenant
You might not have much time between tenants, so you will want to plan how to best use this time to ensure a seamless transition. We like to arrange for tenants to move out before noon on their last day. In most cases, this makes it feasible for a new tenant to move in the next day because we always plan ahead and make arrangements for repairs and maintenance in the small amount of transition time we have. Using our detailed Alberta Tenant Move Out Checklist will hopefully make the process go smoothly for you. It is still a lot of work to transition tenants, so if you find yourself overwhelmed, you might want to consider professional property management and get all the benefits of property ownership without the stress of property management.
