Most disputes between landlords and tenants begin on the day the keys change hands, or rather the day nobody wrote anything down. The tenant says the wall was already cracked, the landlord says it was not, and the deposit becomes the argument. A careful handover takes an hour and prevents months of friction.
Before the tenant arrives
Prepare the unit properly first. Fix what is broken, clean it, test the taps, sockets, locks and lights, and replace any keys you cannot account for. Take dated photographs of every room, including meter readings, the condition of floors and walls, and any appliances you are leaving behind. Photographs with the date on them are the strongest evidence either side can have.
If the property has a service charge, shared areas or a caretaker, write down who the tenant should contact and what is covered. Our article on service charges and sinking funds explains how these costs work in apartments.
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The inspection walk-through
Walk through the unit together on the day the tenant moves in. Go room by room and note the condition of the walls, ceiling, floor, windows, doors, fittings, sanitary ware and electrics. Write down any existing damage, however small, such as a chipped tile or a stained ceiling. Both of you should sign and date the list, and each should keep a copy.
The inventory
If you let the unit furnished, or with appliances, the inventory should list each item, its condition and any serial numbers. Even in an unfurnished unit it should list curtain rails, fitted wardrobes, light fittings and the number of keys. The rental property and tenant register has space for this, and it keeps the tenant's details, the start date and the rent together in one place.
The deposit
Agree the deposit in writing and say what it covers: unpaid rent, damage beyond normal wear and the final utility bills are the usual items. State when and how it will be refunded. Normal wear and tear, such as faded paint after two years, is not damage. Our guide to rent receipts and tenant deposits sets out what to record, and how to screen tenants and write a tenancy agreement covers the agreement itself.
Keys and access
Record how many keys, remotes and access cards you hand over. Change the locks between tenants, or at least confirm that old copies no longer work. Explain the rules for gates, parking and visitors, and give the tenant the emergency numbers for water, power and the building manager.
The first rent and the first receipt
Issue a receipt for the deposit and the first month's rent on the day you receive them, even if the money came through M-Pesa. A numbered book such as the rent receipt book keeps the numbering tidy. It also gives you the record you need for tax: landlords must declare rental income, and the right regime depends on how much you earn. The rental income tax calculator shows the amount, and MRI or annual rental tax helps you choose. If your tenant is a company, they may need to withhold tax from the rent; see withholding tax on rent and the withholding tax on rent calculator.
Keep the paperwork together
Put the signed tenancy agreement, the inspection list, the inventory, the photographs and the receipts in one folder, on paper and as scans. Our list of records every landlord should keep goes through the rest. When the tenant leaves, repeat the same walk-through and compare it with the first one. If you agree on the condition, the deposit is easy to settle.
A fair start
The aim is not to be suspicious of the tenant. A clear, written handover treats everybody fairly and lets both sides relax. Tenants who feel the process was fair usually look after the place better, pay on time and stay longer.
Questions tenants often ask
Tenants usually want to know who pays for small repairs, how much notice is needed to leave and when the deposit comes back. Answer these in the agreement, not by phone. Small running repairs, such as a replaced bulb or tap washer, are often left to the tenant, while structural faults and major plumbing or wiring remain the landlord's job. State the notice period clearly and give a date for returning the deposit after the final inspection. Clear answers at the start show that you are organised, and a well-run property attracts better tenants.
Related tools and reading
- Free calculator: Rental Income Tax Calculator
- Free calculator: Withholding Tax on Rent Calculator
- Free calculator: Airbnb and Short-Stay Income Tax Calculator
- Excel template: Rental property investment analyser
- Excel template: Rental income annual tax computation
- Excel template: Rent receipt book
- Guide: Rent receipts and tenant deposits: what landlords must record
- Guide: How to screen tenants and write a tenancy agreement in Kenya
- Guide: How to increase rent fairly and legally without losing good tenants