No landlord—or tenant—wants to waste time fighting over who’s responsible for damage to a rental property. Landlords can prevent or defuse disputes over damage and security deposits at move-out by filling out a walk-through checklist with their tenants at move-in. A completed checklist documents the condition of the unit at the beginning of the tenancy, creating a record landlords and tenants can refer to if they later disagree about the cause or extent of damage. Also, several states require landlords to give tenants a checklist or written statement of the condition of the rental at move-in. The information below will help landlords create a template that satisfies most states’ requirements.

Creating and Filling Out a Walk-Through Checklist

Landlords should have a basic walk-through checklist that they can customize for each of their rentals. If you’re a landlord, you can use the following suggestions to draft your checklist, then tailor the document as appropriate for the unique features of your rental.

• Break down the rental by rooms. Start your checklist by creating a separate section for each room in the rental. Then, list all the features of and fixtures in each room—including smoke and carbon monoxide detectors (more on these below). Add a row labeled "Other" to use during your walk-through to address anything you forgot to include in the checklist or that might apply to the room as a whole. For instance, if there’s a cracked switch plate or moulding that needs repair, note these in the “Other” section.

• Make “move-in” and “move-out” sections. Create columns in your checklist to record conditions at both the move-in and move-out walk-throughs (with dates). (Some landlords inspect their rental properties mid-tenancy or when an existing tenant signs a new lease for an additional term. If you plan to inspect the property at any time before the existing tenants move out, add a column for recording mid-tenancy condition.) Your checklist might look like this:

• Don’t forget odd or miscellaneous spaces. Some rentals might have odd spaces or areas that aren’t big enough to warrant their own section in the checklist, such as an entryway, a long hallway, a staircase, or a loft. Create a section to describe the condition of these spaces (you could title it “Other Areas” or “Miscellaneous”).
• Include outdoor areas. If the rental has outdoor space (such as a patio or deck) or attached or outlying structures (such as a garage or shed) that the tenants will use, you should include it in your checklist. Create a separate section for the space, or, if it’s a small space without many features, include it in the section you create for miscellaneous areas.
• Make space for additional explanations. Leave some blank space at the end of your checklist where you can write observations about the condition of the unit that don’t fit neatly into your checklist’s columns. (Be sure to note the date you write the comment to avoid confusion if you use this space during a future inspection.)
• Add signature blocks. Everyone who signs the lease or rental agreement—including all tenants—should also sign the checklist. Add signature and date lines for both the move-in and move-out walk-throughs.

Review your checklist from time to time—you might need to change it when you remodel, make repairs, or replace items in your rental.

Completing the Walk-Through Checklist

It’s not only a good business practice to do a walk-through of the unit with your tenants either before tenants move in or within the first few days of the tenancy—it might be a requirement in your state. Again, this joint walk-through is the time to fill out the move-in section of the checklist. Make your own notes (and maybe take photos or video) as you inspect the unit, and record your tenants’ observations and concerns as well. Once the walk-through is over, you and your tenants should sign the checklist. As soon as you can, provide a copy to the tenants.

If you aren’t able to walk through the unit with your tenants, fill out the checklist on your own and give a copy to the tenants (don’t sign it yet). Ask the tenants to review the checklist and write in anything they disagree with or want to add. Have them sign it and return it to you within a few days. If the tenants add anything you disagree with, you’ll need to discuss or correspond about the issue with them. Put any resolution (or disagreement) in writing.

After everyone has signed the checklist and you have provided a copy to the tenants, keep the document in your files. When it’s time for the next walk-through—whether in the middle or at the end of the tenancy—bring the checklist and fill out the appropriate part.

Know Your State’s Law

Check your state’s law to find out if you must provide tenants with some form of move-in checklist, and to confirm that your checklist contains all the required information. Some states don’t require checklists, but do require landlords to take other actions before move-in. For example, several states require landlords to:

• perform a walk-through with the tenants
• provide tenants with a written list of preexisting damage, or
• give tenants the opportunity to provide the landlord with a list of items needing repair within a few days of moving in.

Often, landlords must complete one or more of these tasks before they can collect a security deposit.

Also, find out your state’s law regarding smoke detectors and carbon monoxide detectors. Many states require separate disclosures regarding these safety features. Some states require landlords to instruct tenants (for example, in writing or by testing in their presence) how to test these detectors. Your state might also have specific rules about where these detectors must be placed.

If you’re not sure about your state’s requirements, consult a local landlord-tenant attorney. An attorney can advise you about state law, provide you with any forms your state requires, and review your checklist to make sure you’ve covered everything. Landlords’ associations are also a good source for learning about local requirements and getting advice about managing your rentals.