Required Notice
Notice of intent to vacate must be given within a certain period, which should be specified in the terms of most lease agreements. A letter from the Manager outlining the procedures Tenants should follow when terminating the tenancy should follow when terminating their tenancy can avoid many misunderstandings. Sometimes Tenants are poorly informed as to the notice required and details they must follow when vacating their space. The letter should include a checklist for the Tenant, detailing the expected cleaning, post-occupancy inspections, return of security deposit, etc.
 If a good Tenant decides to move, the Manager should contact him or her immediately to find out whether the decision was prompted by any oversight on the part of management. If so, the Manager should ascertain if the situation can be corrected, thereby retaining a valuable Tenant. Even if the Tenant’s decision is irreversible, the Manager should note the reasons behind it and file them for future reference.
Exit Interview
An exit interview between Manager or Leasing Agent and Tenant should be made in person, if possible, and should be a routine procedure. By analyzing the responses of all Tenants who have moved recently, the Manager can better understand the reasons behind the Tenant turnover
Refusal To Renew
The manager may refuse to renew a lease by giving the Tenant appropriate notice of termination. This procedure can be used in lieu of the more expensive and time-consuming court eviction suit, provided the Tenant’s conduct is not too destructive and the remaining lease term is short.
To stay on firm legal footing, the Manager who does not renew a lease should have demonstrable proof of just cause for the refusal. It is important for a Property Manager to document all events and situations which may, in the future, result in a decision to refuse to renew a lease or for use in court for an eviction case. Such termination may not be based on the Tenant’s race, color, religion, national origin, sex, familial status, or handicap. Additionally, the Manager is prohibited from serving notice in retaliation for the Tenant’s complaints to the authorities about building health and safety issues.
Inspection of the Premises
Whenever either party terminates a lease, the Manager should inspect the space with the Tenant after the Tenant has removed all personal items and document the condition of the apartment through photos or videos. Whenever possible, the Manager should use the same form used for move-in, the one that had been signed by both the Tenant and the Manager, to determine if any damage has been done to the property and if the unit is being returned in reasonable condition. The Tenant should also be required to sign the inspection checklist on move-out. Any deductions to be made from the security or cleaning deposits can be calculated at this time, accompanied with pictures of the damage to be repaired.
Return of the Security Deposit
Typically, state and/or local laws provide a detailed procedure for returning a security deposit. Generally, the Landlord must account for how the security deposit is returned or retained within a certain period after the lease is terminated. Many states require that the reasons be documented in writing. A security deposit may usually be applied towards damages or required repairs to the property. In Illinois, the Landlord must provide the Tenant with the list of repairs and costs within 30 days of the end of the lease, if the Landlord is withholding the security deposit to pay for part or all these costs. If the Landlord does not provide this list and estimated costs by 45 days after the end of the lease, the Landlord must immediately return the security deposit to the Tenant at that time.
Retention for Damages
Acceptable grounds for returning part of all of the security deposit typically include
- Damages to the premises
- Unauthorized, non-standard, or irreversible decorating
- Excessive cleaning expenses
- Unauthorized alterations
 Charges made against the security deposit must be documented to establish the case against the Tenant. Other documentation may include pictures of the damage or contractors’ bills to clean or repair the premises.
Last Month’s Rent
In the past, residential Tenants sometimes used security deposits as the last month’s rent, but current leases in Illinois forbid this practice. One Manager made the security deposit a different amount than the monthly rent and Tenants stopped thinking of it as rent. Where Landlords do not utilize a security deposit, but instead require a non-refundable move-in fee, the Tenants do not have any invested money that they can utilize to cover the last month’s rent. A large number of Landlords in Illinois are now utilizing a move-in fee in place of security deposits. Security deposit legislation also covers the handling of security deposits when the Ownership of dwelling units changes. Under the law, the person holding a security deposit must either return the deposit to the Tenant or transfer it to the new Owner, while giving notice to the Tenant. Property Managers and Landlords are subject to the same escrow account regulations as Sponsoring Brokers who utilize an escrow account for sale transactions.
