Recovering Damages Before You're Damaged: The Pre-Move Out Inspection

Probably one of the most frustrating things when you work on site is the mountain of uncollected move out charges that are piling up in record levels these days. With the economy the way it is, people just don't have the extra money to pay several hundred or even thousands of dollars for charges stemming from damage to their apartment. Sometimes you'll get lucky and and that magic check will appear in the mail after someone moves out. But most of the time, you'll probably suffer a loss, whether it be on the complete debt or on a portion of it if you send it over to a collection agency to collect. It may seem like a helpless situation. You can't get blood from a stone, as the old saying goes. But, believe it or not, there are things that you can do to nip this situation in the bud and recover more of your damages than you ever thought possible. 

First things first, tackle the issue as far in advance as possible. That means doing a pre-move out inspection, typically between 30 and 60 days prior to the move out. I've seen these done probably 50% of the time, but trust me, the properties that do them have a much better collection rate than the properties that don't. When you inspect an apartment prior to the move out, you have an opportunity to accomplish several things. 

First, you are able to assess the condition of the apartment well before the move out date and determine what maintenance needs to be done, resulting in a quicker turn. Secondly, you create an opportunity to have the resident correct some of these issues prior to moving out, resulting in cost savings for both you and them. 

Finally, by assessing charges while they're still residents, you now have more bargaining power than you would have had you assessed charges after they've moved out.

If you've never done a pre-move out inspection before, then you may be wondering exactly what to do and how to handle the information after you've done it. Here's what I recommend based on my experience on site...

1. Once a resident gives notice to vacate, send them an acknowledgement that you received their notice. In this acknowledgement, you can input their scheduled pre-move out inspection date.

2. When you conduct your inspection, do it as if you're doing the final inspection. Look for cleaning charges, damages, etc.

3. Once you've completed the inspection, create an "invoice" of their charges. This will look much like your standard SODA, with a few exceptions. Be sure to note that this is only an estimate and is subject to change upon move out if more things are found.

4. On the invoice or in an attached letter, let the resident know that you're willing to give them the opportunity to take care of as many of the items as possible on their own to save them money. Be sure to let them know that if they decide to replace items, repair damages or clean, it must be done to your satisfaction and with approved parts only. Then, alongside each item on the invoice, note each item that can be taken care of by them, like cleaning, holes in the walls, etc. Many minor fixes can be done by them easily, but be sure to save the big things, like carpet issues or major damages, for your staff and vendors.

5. On the invoice, give them an opportunity to pay in full by a certain date for a discount. While it stinks to have to lose money by discounting something they obviously owe, it'll cost you less in the longrun in time and money if you have the balance collected as soon as possible.

6. Also, let them know that payment arrangements can be made should they need more time to pay. Should that be the case, offer to meet with them in person to design a plan that works for everyone. By meeting with them face to face, you're building on the relationship that you've already established. It's a proven fact that people are more willing to pay debts when a personal relationship is involved, so working with them while they're still residents is certainly beneficial. The moment they walk out your doors and into their next residence, you'll immediatley become lower on their priority list.


If you find yourself in a position where you still have an outstanding balance when the resident moves out, or, if there are additional charges that need to be assessed from after the pre-move out inspection, you may need to get creative. Probably the best thing to do is to offer a discount for paying by a certain date. This discount should be a little less than the one that they were offered if they paid before they moved out, but still an enticing offer for them. Just be sure that whatever you decide to offer, you make it a policy and you're consistent for every resident. You don't want to be offering different discounts for different residents or you'll find yourself in a Fair Housing mess!

Hopefully you've found these tips and tricks to be helpful. You too can be a rock star in your owner's eyes! :) If anyone has any tips to add, please feel free to comment below!


Morgan Oney, CAM
www.mynewsletterconnection.com Affordable, unique and stylish online and print newsletters for apartment communities!