“Life always gives us another change. It’s called to Move On.” Ana Antunes

When a tenant moves out, housing providers are required to return the security deposit to the old tenants’ new address. Hopefully the tenant has left you with their new address at the time you pick up the keys.

PROCEDURE Housing providers have 21 days from the date they were given possession of the unit to mail this to the old tenant. You should include an accounting of any expenses over 125 dollars that you may have incurred to get the unit back to the way it looked when they moved in. There are restrictions regarding allowable expenses that may be deducted from the security deposit. If you just painted the unit, you may be able to deduct the cost of repainting if it hasn’t been too long. If in doubt, check with your real estate attorney to make sure you are within acceptable limits. If there has been damage to the unit, and you need to buy a new stove for example or even if you need a handyman to complete repairs, you should include pictures of the unit, showing condition, as well as any invoices for parts and labor.

SEND A CHECK Once you have accumulated copies of the invoices, pictures and your accounting of the expenses, send that along to the tenants new address. If you don’t have the new address. you should send your letter to the vacant unit. This is what is recommended, but you can always check with your attorney to verify this procedure. I am not an attorney, just a Real Estate broker so I do not give legal advice. Laws are always changing, especially in the rental business, so it never hurts to check with an expert.

MOVE IN FORM The Apartment Association has a lot of very handy forms, from rental agreements to 3 day notices and members are able to use them all. There is a MOVE IN and a MOVE OUT form that can be very helpful. These forms verify the condition of the unit and time of move in and the time of move out. The best idea is to have the new tenant agree to the condition in writing, in both cases. If you use these forms, you are much less likely to be involved in a disagreement or possibly a lawsuit. When you have conclusive proof of expenses, with picture and invoices, it is difficult to argue against you. As always, keeping good records and documenting everything is crucial.

“Life doesn’t stop because something happens to you.” Magic Johnson

What we at PRS PROPERTIES CAN DO. We can give you a good idea of the current value of your building. We can suggest changes you might want to make before sale to give you an idea what type of building you would be able to exchange into. You may decide to stay in the rental business or you may want to move into a more passive real estate investment, such as a triple net or a DSL.. We are always available to chat. We can give you referrals for professionals, such as lenders, contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparable in the area of your properties, so that you know what rental values are in your area. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We are currently looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We can offer a 7 day escrow and all cash at closing. Give us a call. We have also put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.