If your planning to end management due to other plans with your property - selling (not with Aloe), moving back in, or have family moving back in, etc… Read Below

If your ending management when your tenant moves out

According to Arizona law (A.R.S. § 33-1321), the property owner is ultimately responsible for the security deposit once a management agreement ends. Our company was acting as your agent, but that legal relationship has concluded. We will transfer the full security deposit and all relevant tenant documents to you, including the lease and move-in inspection report (if applicable).

Our legal authority to act on your behalf ended with our management agreement. Handling the deposit without a current contract exposes us to liability and could be seen as an unauthorized action. Our company policy is to ensure all actions are legally sound and properly documented. We've fulfilled our obligation to transfer all funds and records to you so you can meet your legal duties as the landlord.

📘 ALOE PROPERTY MANAGEMENT

Move-Out & Security Deposit Handling After Management Ends

Important Information for Property Owners

Why Aloe PM Does Not Automatically Complete Move-Out After Management Ends

When management services terminate, Aloe Property Management’s legal authority to act on your behalf also ends.

While we strive to provide seamless transitions, completing a tenant move-out and issuing a Statement of Disposition (Security Deposit Accounting) after management termination creates significant legal and financial risk for both the property owner and Aloe PM.

Under the Arizona Residential Landlord and Tenant Act (A.R.S. §33-1321), the landlord is legally responsible for:

Issuing the itemized Statement of Disposition
Mailing it within 14 business days (excluding weekends/holidays)
Refunding any remaining deposit
Justifying all deductions
Defending disputes

Even if a property manager prepares the statement, legal liability remains with the landlord.

However, property managers are often named in disputes or lawsuits — even when management has ended.

⚠️ Risks That Arise After Management Terminates

1️⃣ Legal Exposure

If the deposit accounting is disputed, the tenant may:

File a small claims lawsuit
Claim wrongful withholding
Seek statutory damages
Name both owner and property manager

2️⃣ Vendor & Repair Disputes

If vendors are hired after termination:

Owners may dispute scope or pricing
Vendors may seek payment
Tenants may dispute necessity of work
Allegations of overcharging may arise

3️⃣ Authority & Agency Concerns

Once management ends:

Aloe PM no longer has full agency authority
Actions taken without written authorization may create exposure
Indemnification protections may not automatically apply

4️⃣ Insurance & E&O Risk

Deposit disputes frequently trigger:

Attorney review
E&O insurance involvement
Regulatory complaints
Time-intensive documentation requests

🛑 For These Reasons:

Aloe Property Management does not automatically complete move-outs or security deposit accounting after management termination.

However, we understand some owners may request assistance for continuity and documentation purposes.

Inspection Options After Management Ends

🚫 Comprehensive Operational Inspections
Aloe Property Management does not perform Comprehensive Operational Inspections on:
Homes that are no longer managed by Aloe PM
Homes transferring to self-management
Homes transferring to another management company
Comprehensive inspections are reserved exclusively for actively managed Aloe PM properties.
This limitation exists due to:
Liability exposure
Agency authority limitations
Vendor coordination risk
Insurance compliance requirements
✔️ Available Option: $89 Move-Out Inspection
$89 Move-Out Condition Inspection
The only inspection service available for homes that are no longer managed by Aloe PM is:
This inspection includes:
Visual documentation of tenant-related damages
Photo documentation
General notes regarding property condition
Possible suggestions of items that may need attention before the next occupant
Statement of Disposition to tenant with refund of security deposit
It is strictly a visual documentation service for condition purposes only.

Important Conditions

If you request this service:

You remain the legally responsible landlord.
You must approve all repair charges in writing.
You must provide funds before vendor scheduling.
You must sign a Limited Scope Agreement & Indemnification.

Without a signed agreement and funding in place, Aloe PM will transfer all documentation and deposit to you and you will be responsible for completing the move-out and deposit accounting directly.

Our Priority

We aim to:

Protect your asset
Protect compliance with Arizona law
Protect both parties from unnecessary legal exposure
Ensure professional documentation during transition

📑 LIMITED SCOPE MOVE-OUT & SECURITY DEPOSIT COMPLETION AGREEMENT

Property Address: ___________________________

Owner Name(s): ___________________________

Tenant Name(s): ___________________________

Lease Termination Date: ___________________________

1. Purpose

This agreement outlines the limited services Aloe Property Management (“Manager”) will provide after termination of the Property Management Agreement.

This agreement does not reinstate full management services.

2. Scope of Services

Manager agrees to provide limited services consisting of:

Final move-out inspection
Documentation of condition
Coordination of approved vendors
Preparation of Statement of Disposition
Deposit accounting summary

No ongoing management services are included.

3. Owner Acknowledgment of Legal Responsibility

Owner acknowledges and agrees:

Owner remains the legally responsible landlord under the Arizona Residential Landlord and Tenant Act.
Owner is responsible for statutory compliance deadlines.
Owner is responsible for mailing or approving delivery of deposit accounting.
Owner is responsible for defending any disputes.

Manager does not assume landlord liability.

4. Advance Funding Requirement

Owner agrees to:

Provide full funding of anticipated vendor costs in advance
Provide written approval before work is scheduled
Reimburse any additional charges incurred

Manager shall not advance funds.

5. Fees

Owner agrees to pay:

Move-Out Coordination Fee: $________

Fees are earned upon execution of this agreement.

6. Indemnification & Hold Harmless

Owner agrees to indemnify, defend, and hold harmless Aloe Property Management, its brokers, agents, and employees from any:

Tenant disputes
Deposit claims
Vendor claims
Allegations of improper deductions
Legal proceedings
Regulatory complaints

arising from the move-out process or deposit accounting.

This indemnification survives termination of management services.

7. Limitation of Liability

Owner agrees that Manager’s total liability, if any, shall not exceed the total fees paid under this Limited Scope Agreement.

Owner waives any claims for consequential, punitive, or special damages.

8. Dispute Resolution

Any disputes arising from this agreement shall be resolved in the county where the property is located and governed by Arizona law.

9. Entire Agreement

This agreement represents the entire understanding regarding limited post-termination services.

Owner Signature: ___________________________ Date: ________

Owner Signature: ___________________________ Date: ________

Aloe Property Management Representative: ___________________________ Date: ________