End-of-Tenancy Process: Notice, Inspection and Deposit Refund

The end-of-tenancy process is where many good landlord-tenant relationships in Bangladesh go wrong. For months or years everything was fine: rent paid, small repairs sorted. Then, in the last few weeks, arguments start. Was notice given in time? Is the advance fully adjusted? Who pays for the broken bathroom tiles? Why is the security deposit (jamanat) being held back? The tenant leaves angry, the landlord feels cheated, and sometimes the matter reaches the local councillor, the police station or a lawyer.

It does not need to be this way. A clear, predictable end-of-tenancy process, from notice to inspection to final settlement and deposit refund, protects both sides. This guide walks landlords (and tenants who want to know what to expect) through each stage, with a timeline, an inspection checklist, a worked settlement example and sample messages. It is written for flats and houses, and most points also apply to shops and offices.

This is general information, not legal advice. Notice periods and deposit rules depend on your agreement and on laws such as the Premises Rent Control Act 1991 (বাড়ি ভাড়া নিয়ন্ত্রণ আইন, ১৯৯১). For disputes, consult a lawyer or the House Rent Controller.

Stage 1: Notice to End the Tenancy

Everything starts with notice. Your rental agreement should say how much notice either side must give, how it must be given (in writing is best) and from which date it runs. In many Bangladeshi residential agreements, a notice period of one to three months is common, often expressed as notice given by a certain date of the month to leave at the end of a later month. Whatever you agreed, follow it.

When the tenant gives notice

• Ask for it in writing (a signed letter, SMS or WhatsApp message is better than a verbal word at the gate).
• Reply in writing confirming the date received and the final day of the tenancy.
• Mention viewing arrangements for new tenants and the move-out inspection.

When the landlord gives notice

• Give the notice period required by the agreement and the law, in writing, with proof of delivery.
• State the reason where appropriate (own use, major renovation, end of fixed term), calmly and respectfully.
• Do not use pressure tactics such as cutting utilities or removing belongings; these can create legal trouble.

A ready format is available in our notice to vacate template.

Sample confirmation message: "Dear [Tenant name], we received your notice today, [date], to vacate Flat [3B]. Your tenancy will end on [date]. We will arrange the move-out inspection on that day at a convenient time. Please allow viewings for new tenants on [days/times] with prior notice. Thank you. – [Landlord name]"

Stage 2: Review the Money Before the Last Month

Many disputes come from last-minute surprises. As soon as notice is confirmed, review the account and share a summary with the tenant:

• Rent paid up to which month; any outstanding dues.
• Advance rent paid at move-in, how much has been adjusted so far, and how much remains.
• Security deposit held.
• Pending utility bills: electricity sub-meter, gas, water, service charge.
• Any agreed charges (for example, a repair the tenant agreed to pay for).

Sometimes a tenant proposes "adjust the last month's rent from the security deposit." Whether you accept is your choice and depends on the agreement, but it removes your protection for damage and final bills. A common compromise is to accept only if the final inspection is expected to be clean, and to settle any remaining difference immediately after inspection. For the difference between advance and deposit, see our guide to advance rent and security deposit in Bangladesh.

Stage 3: Arrange Viewings During the Notice Period

To avoid a long vacancy, you will want to show the flat while the tenant is still living there. Agree fixed viewing slots, give notice before each visit, and keep visits short and respectful. Most tenants cooperate when asked politely. Thank them; a cooperative outgoing tenant can save you a month or more of lost rent.

Stage 4: Pre-Move-Out Visit (Optional but Useful)

About two weeks before the final day, ask whether you can do a quick walk-through with the tenant. Point out anything they might want to fix themselves before leaving, such as a broken towel rail, missing bulbs, holes from wall hangings or heavy stains. Many tenants prefer to arrange a small repair cheaply rather than have it deducted from the deposit. This single visit prevents a large share of deposit disputes.

Stage 5: The Move-Out Inspection

On the last day, inspect the property together with the tenant, after their belongings are removed. Bring the move-in checklist and photos taken at the start of the tenancy. Compare room by room, and take dated photos of any damage.

At the same time, take final meter readings (electricity sub-meter and any water or gas meters), photograph them, and have both parties sign the readings.

Normal Wear and Tear vs Damage

This distinction is the heart of fair deposit deductions. Normal wear and tear is the natural decline of a property through ordinary use over time: paint fades, fittings loosen, floors lose their shine. The longer the tenancy, the more wear is reasonable. Damage is harm beyond normal use, caused by accident, negligence or misuse. A landlord should not charge for normal wear, and should not charge the full cost of brand-new items to replace old ones. If a ten-year-old basin cracks, the tenant should not pay for a luxury replacement.

Stage 6: Calculate the Final Settlement

After inspection, prepare a written final settlement showing every figure. Share it with the tenant, ideally the same day.

For example (illustrative): a tenant rented a flat in Dhanmondi at Tk 30,000 per month. At move-in they paid advance rent of Tk 90,000 (to be adjusted at Tk 10,000 per month) and a security deposit of Tk 30,000. They leave after 12 months.

• Advance: Tk 90,000 adjusted at Tk 10,000 × 9 months = fully adjusted by month 9. Remaining advance: Tk 0.
• Rent for the final month: paid in full.
• Final electricity: sub-meter from 7,850 to 8,090 = 240 units × Tk 10 = Tk 2,400 (unpaid).
• Service charge for final month: Tk 3,000 (unpaid).
• Damage: one broken bathroom mirror (replacement Tk 1,800) and one lost gate key and lock change (Tk 700). Total Tk 2,500.

Deductions: Tk 2,400 + Tk 3,000 + Tk 2,500 = Tk 7,900. Refund due: Tk 30,000 − Tk 7,900 = Tk 22,100.

Note what is not deducted: general repainting after one year of normal living, small nail holes and ordinary cleaning. Show the tenant receipts or quotes for the mirror and lock if asked.

Stage 7: Refund the Deposit Promptly

Return the balance promptly, ideally on the day of move-out or within a short period stated in the agreement, if final bills are known. If a utility bill is not yet available, you can hold back a small, reasonable estimate and settle the difference once the bill arrives, explaining this in writing. Pay by bank transfer or mobile financial service where possible, so there is a record, and get a signed acknowledgement if paying cash. Our security deposit return letter template gives you a ready format for the settlement statement.

Sample settlement message: "Dear [Tenant name], thank you for staying with us. Final settlement for Flat [3B]: security deposit Tk 30,000; deductions: electricity Tk 2,400, service charge Tk 3,000, mirror replacement Tk 1,800, lock change Tk 700 (total Tk 7,900). Refund: Tk 22,100, sent today to your bKash [number]. Please confirm receipt. Wishing you all the best. – [Landlord name]"

Stage 8: Close the Records and Prepare for the Next Tenant

• Record the final settlement, deposit refund and move-out date in your ledger.
• Collect all keys and access cards; change the main door lock if keys are missing.
• Update tenant information records submitted to the police or building management where required.
• List repairs and painting needed; book workers immediately.
• Keep the inspection photos, readings and settlement statement for your files.

End-of-Tenancy Timeline at a Glance

Special Situations

Tenant leaves before the notice period ends

If a tenant wants to leave early, check the agreement. Often the tenant remains liable for rent for the notice period, but many landlords agree to release them early if a new tenant is found quickly. Put any such arrangement in writing, including the date rent stops.

Tenant leaves without notice or disappears

Occasionally a tenant stops paying and simply stops coming, leaving belongings behind. Do not immediately clear the flat. Try to contact them and their emergency contact, send written notice to their known addresses, and take legal advice on how to recover possession and deal with the belongings lawfully. Document everything with dated photos and, if possible, a witness.

Shops and offices

Commercial tenancies add extra steps: removal of the tenant's fit-out and signage, reinstatement of the unit to the condition agreed in the lease, final service charge and generator bills, and, where relevant, settlement of any tax deducted at source and the related certificates. Agree a reinstatement standard in writing before the inspection, and allow enough time for the work so the next tenant is not delayed.

What If There Is a Dispute?

If you cannot agree on deductions, stay calm and keep everything in writing. Show photos from move-in and move-out, receipts or quotes for repairs, and the meter readings. Offer a compromise on genuinely unclear items. Many disputes are resolved by a respected neighbour, the building's owners' association or a local representative. If not, the House Rent Controller or the courts are the formal routes; take legal advice before proceeding. Never hold a tenant's belongings or documents to force payment.

Common End-of-Tenancy Mistakes

• Verbal notice only, leading to arguments about dates.
• No move-in checklist or photos, so nobody can prove the original condition.
• Charging for normal wear and tear or for full new replacements of old items.
• Delaying the refund for weeks without explanation.
• Letting the tenant "use the deposit as last month's rent" without an inspection plan.
• Forgetting final meter readings, leaving electricity or gas bills unrecoverable.
• Not collecting keys and cards, creating security risks for the next tenant.
• Cash refunds without acknowledgement.

Final Thoughts

A fair end-of-tenancy process has a simple shape: written notice, an early look at the account, cooperative viewings, a joint inspection against the move-in record, a transparent settlement that separates damage from normal wear, and a prompt refund with proof. Landlords who follow it keep their reputation, recover what they are genuinely owed and re-let faster. Tenants who know the process can prepare and leave on good terms.

Bariwala ERP (বাড়িওয়ালা ERP) makes the money side easier: advance adjustments, payments, receipts, due lists and sub-meter electricity bills are already recorded against the unit, so a final settlement takes minutes instead of an evening of searching through notebooks. Whatever tools you use, keep the steps above in writing and the end of a tenancy can be as smooth as the start.