Ashlee D. Gonzales of the Palo Alto-based law firm, Brewer, Offord & Pedersen, LLP, has published a useful checklist for Landlords upon termination of a tenancy. The full article can be found on the Brewer firm’s Real Estate blog. Here is a useful summary.

Pre-Move-Out Inspection
When a tenant’s occupation of a residential unit is about to expire, the landlord must offer a pre-move-out inspection related to the tenant’s security deposit. Civil Code Section 1950.5 requires specific language to be delivered to the tenant relating to the inspection.

With regard to when the inspection should occur, Section 1950.5 requires it to be at a reasonable time, but no earlier than two weeks before the termination or the end of lease date prior to any final inspection the landlord makes after the tenant has
vacated the premises. The tenant has no obligation to conduct a pre-move-out inspection, and if they fail to do so, they’ll be unable to cure deficiencies that would otherwise result in deductions from the deposit.

After the inspection, the landlord must provide the tenant with an itemized statement of proposed deductions, specifying what repairs and/or cleanings need to be done to avoid such deductions. The statement requires specific statutory language, and it may be helpful to have qualified legal counsel prepare the statement.

Confirm Relinquishment of Possession
Whether or not there is a signed move-out agreement, valid cause to terminate the tenancy, or some other kind of mechanism terminating the tenant’s right to possession, the landlord must confirm that the tenant has given up possession. In lieu of written confirmation, a full return of the keys is another way that a tenant can affirmatively relinquish possession. If uncertain whether the tenant has actually relinquished the premises, it is best to consult with an attorney.

Return of Security Deposit and Itemized Statement
Landlords must send their tenants an itemized statement and a return of the security deposit within 21 days after the tenants vacate the subject property. Landlords must itemize any deductions allowed under Section 1950.5., make those deductions, and send the itemized statement with a refund of any remaining deposit to the tenant at their forwarding address. If an address is not provided to the landlord by the tenant, landlord is allowed to mail the statement and deposit to the subject property. If a landlord makes deductions from the deposit, the landlord must provide invoices, receipts, documentation, etc., to the tenant supporting the deductions. Failure to do so will result in non-compliance with the statute. If documentation cannot be provided within 21 days, a landlord may send them after the itemized statement, typically required within 14 days after the statement was delivered. If this is the case, the landlord must make a good faith estimate of the deductions and follow up with the documentation within the time provided.

Failure to comply with Civil Code Section 1950.5 may result in the landlord being required to return the full deposit to their tenant. If deemed the landlord retained the deposit in bad faith, the tenant may claim damages in the amount of two times the deposit (in addition to return of the deposit).

Abandoned Personal Property
If tenants leave items of personal property behind there is a specific procedure that landlords must go through to comply with California law as it relates to abandoned personal property belonging to a tenant.

Pursuant to Civil Code sections 1980 through 1991 landlords must inventory the items left behind by the tenant and the inventory included on a notice that outlines the specific timeline the tenant must recover the property. Depending on how notice is served, the tenant has anywhere from 15 to 18 days to then recover the property. If the tenant doesn’t recover the property within 2 days after they vacate, the landlord can thereafter charge the tenant the reasonable cost of storage for the items.

If the tenant fails to respond and/or recover the items within the statutory time, the landlord can dispose of the items depending on the value of the abandoned property as follows: If the property is worth $700 or more, the property must be sold in
a public auction that requires very specific notice and actions to comply with the Code. If the items are worth less than $700, the landlord can dispose of the items in any way the landlord chooses.

Termination of tenancies are strictly regulated. Should the time arise to terminate a tenancy we recommend that property owners, property managers and landlords contact qualified legal counsel to assist. Landlords and their agents face significant liability to tenants even if the landlord’s statutory violation is inadvertent.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.