A landlord-tenant closing statement is used to calculate the amount of money a landlord must return to the tenant or that a tenant may owe the landlord after the expiration of a lease. The landlord uses this form to calculate all deposits and credits paid by the tenant, and subtracts from that total any charges that apply, such as unpaid rent or damage to the rental unit. Any amount left over must be returned to the tenant. Likewise, if the charges exceed the credits due the tenant, the tenant must tender that amount to the landlord.
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Landlord-Tenant Closing Statement FAQ
Why is a closing statement important? The importance of the closing statment is in providing documentaion for the exact amounts of charges and credits changing hands between landlord and tenant. Itemization of these amounts is often required by state landlord-tenant law and helps to reduce uncertainty in the final stages of the landlord-tenant relationship. The form allows all expenses to be documented in an organized manner.
What laws govern closing statement considerations? Elements of each state's landlord tenant law typically governs what, and how much can be charged at the end of a lease for cleaning, damange, unpaid rent, fees, etc. These charges are often recovered from a tenant's security deposit.