Hand Over Property To New Tenant

Handing over a property to a new tenant is an important process. But it's something that most landlords neglect. Or they completely leave it up to their property agents, who may underestimate its importance.

Your new tenant has just signed the tenancy agreement. You must be very excited.

Many landlords assume that their job is complete when tenant signs on the dotted line. But that's not true.

After handing over the property to the tenant, their job as landlords has only begun.

Why Proper Handover Is Important

Proper handover is about clear communication between you and your tenant. You don't want any form of ambiguity.

If done carelessly, it might lead to fault-finding in the future. You think it's the tenant's fault. But the tenant insists it's your responsibility.

At the end of the day, both parties lose.

Read on to find out what are the things you need to do for a proper handover. This will build the foundation for a lasting relationship with your tenant.

Collecting Security Deposit & First Month Rent

Upon signing the tenancy agreement, the balance security deposit and first month rent become due immediately. Technically, your tenant is now bound by the terms of the agreement.

If your tenant doesn't pay the deposit and/or the first month rent, he's in breach of the tenancy agreement.

Pro Tip: Never hand over the keys until you have received both the security deposit and first month rent. It doesn't matter if the lease has started days or weeks ago.

Inventory List

The inventory list is an important element of and should form part of the tenancy agreement.

The inventory list shows the condition of your property before hand over.

At the end of the tenancy, your tenant will return back the property to you. You'll refer to the inventory list to compare the condition of your property.

Usually, the tenant has taken good care of your property.

But if there's any damage due to negligence, you can claim any repair cost from the security deposit.

Without the inventory list, you have no basis to claim any damage against your tenant, even if you are right.

Things to Include in the Inventory List

The inventory list should include all the fixtures and fittings in the property.

Fixtures are items that are immovable. For example: false ceilings, air conditioners, doors, window blinds and flooring.

Fittings refer to movable objects. For example: tables, chairs, standalone shelves, cabinets, and fire extinguishers.

Pro Tip: A picture speaks a thousand words. Use photos to document fixtures and fittings. Words can never fully describe the condition of any object. But a picture can dispel any ambiguities. I've received many compliments from tenants for my photos.

In fact, having an inventory list with pictures of fixtures and fittings is one of the hallmarks of a good tenancy agreement. It also shows the conscientiousness of the preparer of the tenancy agreement.

One can never be more detailed in preparing the inventory list. The more detailed it is, the better.