Closing Statements - Closing Statement

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.

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.

Tips for Preparing Closing Statements

  1. Pay punctually. Don't be late on rent and maintain your credit rating and history transparent and reliable. If you’ve run into financial difficulties in the past, tell your property owner beforehand.
  2. Adhere to the Closing Statements conditions. The lease agreement saves equally you and the property owner. Therefore, the parties need to follow the terms and conditions that they agree to. In case you are unable to meet a rental agreement condition, discuss it with the house owner rather than trying to cover it.
  3. Try to look for some common ground together with your property owner. There’s no reason to become close friends, but you should interact from time to time, so it's better to do so in a friendly way.
  4. Renew your Closing Statements. A lot of renters believe that this is a homeowner's duty to remember to update the rent purchase agreement. While it makes sense, it is recommended to talk to your homeowner and decide about renewal beforehand. Otherwise, you risk becoming left homeless.
  5. Consider having a guarantor. If you don't have a lease history, the property owner can request you for a guarantor. You can choose your parents and employer, or college. Nobody will disturb your guarantor as long as you answer your agent and match the terms of the contract.