- Owner
- Property Manager
- Effective date
- September 15, 2026
- Review cycle
- Every 12 months
1.Purpose
To close out a tenancy consistently, with the unit inspected, keys returned, and the security deposit handled according to the lease and local law.
2.Scope
Applies to the move-out process from notice through deposit disposition for residential tenants. Preparing the vacated unit for the next tenant is covered by the unit turnover SOP.
Definitions
- Move-out inspection
- A walkthrough comparing the unit's condition at move-out to the move-in condition report.
- Deposit disposition
- The itemized statement showing how much of the security deposit is returned and what, if anything, was deducted.
3.Responsibilities
- Property Manager
- Approves deposit deductions, prepares the disposition statement, and handles any tenant dispute.
- Leasing Agent
- Processes the move-out notice, schedules the inspection, and collects keys from the tenant.
- Maintenance Technician
- Assesses damage against normal wear and tear during the final inspection.
RACI matrix
| Activity | Property Manager | Leasing Agent | Maintenance Technician |
|---|---|---|---|
| Process the move-out notice | I | R/A | - |
| Conduct the final inspection | I | R | R/A |
| Collect keys and access items | I | R/A | - |
| Prepare the deposit disposition | R/A | C | C |
| Respond to a deposit dispute | R/A | C | - |
R = Responsible, A = Accountable, C = Consulted, I = Informed
4.Materials and PPE
Materials, tools and systems
- →Move-in condition report for comparison
- →Move-out inspection checklist
- →Camera or phone for condition photos
- →Forwarding address form
- →Property management software
- →Deposit disposition statement template
5.Procedure
- 5.1
Receive and log the move-out notice
Leasing AgentLog the tenant's written move-out notice with the date received and the intended vacate date, and confirm it meets the lease's required notice period.
- 5.2
Confirm the forwarding address
Leasing AgentAsk the tenant for a forwarding address in writing so the deposit disposition and any remaining deductions can be sent to the correct place.
- 5.3
Offer a pre-move-out walkthrough
Leasing AgentOffer the tenant an optional walkthrough before the final vacate date so they can address any items themselves and avoid deductions.
- 5.4
Schedule the final inspection
Leasing AgentSchedule the final inspection for after the tenant has vacated and returned keys, giving proper notice to enter as required by the lease and local law.
- 5.5
Conduct the move-out inspection
Maintenance TechnicianWalk every room with the move-in condition report in hand, photographing and noting any damage beyond normal wear and tear.
Checkpoint: The move-out inspection is compared item by item against the move-in condition report, with photos taken of any new damage.
- 5.6
Collect keys and access items
Leasing AgentCollect all keys, fobs, garage remotes, and parking passes issued at move-in, and confirm the count against the original issuance log.
Checkpoint: Every key and access item logged at move-in is returned or accounted for before access is deactivated.
- 5.7
Deactivate tenant access
Leasing AgentDeactivate any electronic fobs, codes, or building credentials issued to the tenant once keys are confirmed returned.
- 5.8
Separate damage from normal wear
Maintenance TechnicianAssess each item of damage against normal wear and tear guidance, since ordinary wear generally cannot be deducted from the deposit under most local law.
- 5.9
Prepare the deposit disposition
Property ManagerItemize any deductions with supporting photos and repair or cleaning costs, and prepare the disposition statement within the timeframe required by local law.
Warning: Deposit deductions and return timeframes are governed by local law and the lease. Confirm current requirements before withholding any amount.
- 5.10
Send the disposition and refund
Property ManagerSend the itemized disposition statement and any remaining deposit balance to the tenant's forwarding address by the required method and deadline.
- 5.11
Handle a tenant dispute
Property ManagerIf the tenant disputes a deduction, review the documentation with them calmly, referencing the condition reports and photos, and follow company policy for escalation.
- 5.12
Close the tenant file
Leasing AgentUpdate the property management software to mark the unit vacant, archive the tenant's file, and hand off the unit to the turnover process.
6.Quality checks
- →Every move-out has a documented inspection compared against the move-in report.
- →Deposit dispositions are sent within the timeframe required by local law.
- →All issued keys and access items are accounted for before deactivation.
- →Deductions are limited to damage beyond normal wear and tear, with photo evidence.
7.Records
- →Move-out inspection report with photos
- →Deposit disposition statement
- →Key and access return log
- →Tenant forwarding address form
8.KPIs
- →Percentage of dispositions sent within the required deadline
- →Average deposit amount returned versus withheld
- →Number of deposit disputes per quarter
9.Common mistakes
- →Deducting for normal wear and tear instead of only actual damage.
- →Missing the legal deadline to send the deposit disposition.
- →Deactivating access before confirming all keys were returned.
- →Not documenting the move-out inspection with photos.
10.Revision history
| Revision | Date | Description | Reviewed by |
|---|---|---|---|
| 1.0 | September 15, 2026 | Initial release | Alexa Uskova |
This is a template. Adapt it to your organization, equipment and local regulations before use.
