The Importance of A Tenant Walkthrough
Before we get into the nitty gritty about doing a tenant walkthrough I should start by explaining what a tenant walkthrough is and why it’s so important to complete a walkthrough with your tenants.
A Tenant Walkthrough is a mutually agreed upon representation of the state of the property between a tenant and the landlord or their agent and should be completed before a tenant takes possession, and upon giving up possession.
Bill Biko – The Educated Landlord
The important part (well one of the important part’s) in the definition above is that needs to be mutually agreed upon by the landlord and the tenant.
That means both parties involved (the tenant and the landlord or their representative) agree to all the good and the bad about the condition of the property.
Now more important parts; they not only must agree, but the tenant walkthrough needs to be on paper, signed and dated.
It can’t be verbal, it doesn’t consist of a handshake nor does a video or a couple photographs cut it on their own!
It Must Include Paper, Signed & Dated By Both Landlord & Tenant!
That statement above was so important and non-negotiable that I had to bold it!
This signed and dated document is your proof of the condition of the property at time of move in and in many regions is required if you hope to keep any part of a security deposit or damage deposit to cover damages to your property.
Without a signed dated document that missing door was never there and you’re paying to replace it.
That oil stain on the carpet was there when they moved in and the payment for the new carpet comes out of your bank account. And the holes in the drywall were always there and you’re paying out of your pocket to fix it. Ultimately without the walkthrough, it comes down to a he said/she said situation.
For many landlords the pain of this “he said/she said” moment doesn’t really show up until they have to pull that $500 or that $1,000 out of their own pockets to pay for damages caused by a tenant.
That’s when the pain becomes real.
My point being, in order to avoid that pain, you need to do a tenant walkthrough of your property each and every time.
Non Negotiable Points About Tenant Walkthroughs
I need to impress upon you two main points with walkthroughs.
Two points that are non-negotiable and that if you follow through on every single time you place new tenants in your property, that they will save you money, reduce your headaches and keep you in control.
I already mentioned the first one above, your tenant walkthrough must be signed and dated, and also of importance, the tenant needs to get a copy of it.
These days this can be accomplished with a smart phone and a PDF scanning app right on the spot allowing you to immediately give the tenant a copy.
The second non-negotiable point is, the tenant does not get keys to the property until the walkthrough is signed off on and all deposits and rents you required are paid and processed.
By processed I mean the money is in your account and won’t get clawed back. As in NSF or insufficient funds if paid by check.
Personally I only accept cash, bank drafts/money orders or electronic money payment for the initial deposit and first months rent. As these are typically guaranteed payments I end up assured I actually am getting paid.
If someone wants to give me a check, I inform them it’s my policy to wait ten days after depositing the check before releasing any keys to avoid any issues. This tends to make scammers go away and real tenants come up with the funds solving two problems for me.
OK, enough pre-amble, onto the walkthrough process!
My Tenant Walkthrough Process
Pre-walkthrough Steps
My walk through process actually starts before I head to the property.
Before I head over, and usually the night before when possible, I prepare my walkthrough by filling in the details I already have.
- Property Address
- Tenant Name(s)
- Landlord Name or Landlord Company Name
By doing this in advance I have the full property address, I have the complete tenant name down and I have the appropriate landlord info filled in. All this saves me time and confusion during the walkthrough.
When I’m meeting a tenant for a walkthrough it starts with me arriving at least thirty minutes before the tenants arrive.
This thirty minutes allows me to go through and do a walkthrough without anyone looking over my shoulders and allows me to do all my usual property checks.
During this time I make sure there are no obvious issues with the property, that toilets are flushed (if the property has been vacant for any length water in toilets tend to evaporate and can cause staining if you have hard water in your area), that there is toilet paper in place (it’s the right thing to do..) windows are opened if it needs airing, all my staging items and cleaning items are packed up and that all lights are on to help show it better.
Once that initial sweep is done, I’ll take my walkthrough paperwork with me and make notes along the way going through each room marking off it’s status.
With my walk through form I have boxes to check off whether the condition of each element I check is OK, whether it Needs Repair, Needs Cleaning or if there are further details I have a blank space to add additional notes.
If there are items not applicable, say there i no dishwasher at the property, I just strike it through and initial (and have the tenant initial as well later).
I go through each area of the house, kitchen, bedrooms, living rooms etc. and make all my necessary inspections and notes all prior to the tenant arriving.
This includes not just the interior of the property but any garage space, and the exterior as well where applicable.
Once I’ve gone through the initial inspection I take care of all the additional details that need to be complete before the tenants arrive.
These would be tasks such as sorting property keys, checking mail keys (if they have keyed mail), reviewing lease paperwork one last time and simply trying to be as prepared as possible.
Getting these little details worked out before you meet the tenants helps ensure signing in new tenants is far less stressful. Truth be told I usually do all of the key sorting and prep work the night before I meet the tenants so I can spend the majority of my time simply focusing on the paperwork when I meet them in person.
Tenant Walkthrough
Once the tenant has arrived I spend the next few minutes explaining the process. I’ve typically already briefed them of this when I scheduled the signing and walkthrough meeting, but I like to be thorough.
So, I explain we will do the walk through which should take 10-15 minutes and that I did a pre-walkthrough already and that after we both review that paperwork and sign off we’ll review and sign the lease which is another 15-20 minutes.
As part of the initial scheduling I inform them we will be meeting at a minimum for thirty minutes and it will likely be at least an hour.
This time allows me to go over not just all the paperwork, but to provide them with additional details to help them adjust to their new home and to answer any questions that may come up.
These additional details involve informing them of garbage pickup days, where mailboxes may be located, providing contact information and emergency contact information and even talking about local stores and/or restaurants in the area. (Here’s a short article touching on how we keep new tenants happy – Making a Great Impression With New Tenants.)
Once we’re through all this, then the actual walk through can begin!
As we’re already inside I like to start at the front entrance and work my way through the property in as logical of a progression as possible.
This usually works out to be entrance, then living room/dining rooms, kitchen, bathroom(s) and then finally the bedrooms.
Once these main rooms are complete I go through any additional space, such as basements, dens and remaining spaces and then we complete the exterior inspection.
When I do the inspection I’m looking for damage such as dents in the walls or doors, stains in carpets, check closet doors and look for missing or damaged trim. I’ll make sure all the electrical covers are in place and not cracked or broken. I’ll look at light fixtures to ensure they are all in place and that all the bulbs are working.
As I go through the kitchen and bathrooms I’ll inspect under the sinks for any water damage and then in the kitchen I’ll look inside fridges, microwaves and dishwashers and look to ensure they are clean and there are no issues.
In each room with a window I check for cracks in the windows and check for locking mechanisms on sliders, that handles work property for crank windows and that screens are in place and in good condition.
For any issues I find I’ll make notes on my walkthrough form or check the appropriate boxes. If a room doesn’t have one of the items on the list, like a bathroom without a window, I scratch a line through and initial (and also have the tenant initial) that it’s been struck through.
As you go through the inspection you’re not trying to cover anything up or to note every single detail you just want to cover both yourself and the tenant from potential issues.
An example is one of my properties has a couple of sections of floor with deep scratches on them. It appears a rocker may have had a couple loose nails and gouged the floor. Since the floor is laminate and it’s only two sections that are typically hidden by a couch or chair due to their position in the room, I point it out to the tenants, make a note on the form and we both understand they are not responsible for those two scratches! Rather than spending a lot of time and money replacing the entire floor, we just make it work.
Depending on how long your tenants stay with you, and I average a few years typically, there will be wear and tear. It’s expected and I don’t try to go after the tenant for it.
So I don’t get too fussy about the little things. I just want to make sure everything is in reasonable condition, screens, closet doors, light covers and electrical outlets aren’t missing or broken and that the property is in good shape.
I’m expecting after three years I will need to repaint so I don’t over worry about the conditions of the walls too much, there may be a nail hole or two which isn’t a big deal, if the tenant points it out I add it, otherwise carry on.
The new tenants will likely be adding a couple themselves and while I hope they will fill them when they leave, I will be patching anyway so it’s not that big a deal.
In most cases I’ve recently repainted after the turnover so I have a very good idea of the condition of the property’s walls which helps speed up my inspection.
Deposits Are Not Revenue Streams
The important aspect from my viewpoint is that I’m not out to nickel and dime my tenants when they move out. I don’t use security or damage deposits as revenue streams like some less than ethical landlords.
If there is damage, not wear and tear, I will charge for it.
If there is cleanup required after they move out, I charge for it. On the other hand if they’ve been there three years and the cleanup is 75% of what I would do, I just smile and nod.
If I need to steam clean the carpets, I charge for it. If they just need a vacuum more smiling, more nodding and more ignoring.
You need to have a fairly loose line in the sand and the longer they stay with you, the looser and fuzzier that line becomes.
After a couple years if you plan on painting to freshen it up anyway you’ll need to do cleanup after the fact, so why would I charge a tenant for work I had to do anyway?
Finishing the Walkthrough With Your Tenant
Once you’ve gone through everything, finalized and agreed to all the notes and checkmarks everyone needs to sign off on the walkthrough.
This involves not just signing the last page, but also initialing at the bottom of every page that they acknowledge they have read it.
Now my particular form has some additional information on the final signing page where they can sign they agree with the walkthrough or they can sign they disagree with it.
This is more of a legal conundrum that a real issue because first I’ve never had anyone disagree with the walk through. Second, if they did I’d never sign the lease with them and give them keys until we worked out the issue.
Is it legally required, possibly not but I’ve left it in to give my potential tenants a choice.
Once everything is signed off, you’re onto signing off on the lease which will also take a while as you should be reading through it and pointing out all the important details to your new tenants. (Not all tenants understand leases, so as their new landlord make sure they understand your lease! Here’s a short video/article I put together explaining why Explaining Your Lease to Tenants)
Once you’re done signing all the paperwork you can start wrapping everything up.
Wrapping Up
You’ve received your payments and they have been processed so you know nothing will bounce.
You’ve completed your walkthrough and everyone has signed off.
You’ve gone through your lease and properly explained it to your new tenants.
Once everything is signed off it’s time to hand the keys over and welcome them as your new tenants.
As I mentioned earlier you’ll need to get them copies of the lease and the walkthrough which you can do by scanning them on your phone or by scanning them when you return home and immediately sending them off to the tenant.
Congrats, you’ve completed your walkthrough!
Did this cover everything? Did it leave you with any questions?
Is there anything else I could have added or clarified?
I’m going to go out on a limb right about now and do a little mind reading, and that mind reading tells me that some of you might be interested in getting a copy of my walkthrough form. Am I right?
Well I’ve added it below, just click the download link and you’ll receive a PDF version of it. So grab it, take a look and if you have any feedback , I’d love to hear it.
Note this is the free PDF version. I sell the spreadsheet version which you can edit to suit your needs separately. If there’s enough requests for it I’ll add a paid link here at some point, but you can have the non-editable copy for free.
As always, I look forward to your comments and feedback, so click scroll to the bottom and comment away!
Before you do a walkthrough, you need to make sure you find the right tenant!
That involves advertising, interviewing and screening prospective tenants and if you learn to do it right it can save you a world of headaches.
With the average bad tenant typically costing a landlord two months worth of lost rent or more finding the right tenant needs to be a priority.
Knowing what to ask, how to correctly check references and how to pull their credit bureau (and then be able to properly read it) are all a part of that screening process.
I’ve put together an in-depth course that goes through all of the information you need to successfully screen your next tenants. How to advertise and what to write to filter out bad tenants, what questions to ask to ensure you have the right people, how to properly check references to avoid getting scammed and how to pull a credit report (plus what all the 0’s, 1’s and 9’s on the reports mean!).
If you want to be a successful landlord you need to invest in this course to educate yourself about the Art of Screening Tenants.
For more information about the course and to sign up for it, just follow this link, How to Screen Tenants Like An Educated Landlord, oh and I’ll send everyone who orders the course a copy of the editable walkthrough, so enjoy!
Great article. I find these all work for me as well. A lot of times tenants do not show up for the scheduled out inspection. I find it is good to text them and get an agreement by text or email because a lot of times the don’t show up and two days later the want to do the inspection. So get it all on paper and than you can do the inspection on the date agreed even if they are a no show. Some Tenants seem to think we should hold the property for them. They don’t like getting a bill but I make a video and pictures of the inspection and fill out the out inspection.
Hey Kevin thanks! Glad you liked it.
I’ll see about an exit walk through article in the near future with soem tips and thoughts as well.
Bill