If you’ve been in property management long enough, you’ve lived this moment:
You finish the move-out inspection.
You upload the photos.
You run the numbers.
And the total damage is way beyond the security deposit.
Your heart sinks—not because you did anything wrong, but because you already know what comes next: difficult conversations, emotional reactions, and the challenge of trying to create a fair resolution when the costs are undeniably higher than what was collected.
I had a situation like this recently. We placed residents who ended up staying for more than three years. On paper, they were great—clean application, solid income, respectful communication. But when they eventually moved out, the home was left with thousands of dollars in damage, far beyond the security deposit. And when we sent the statement, the guarantor called in a panic on behalf of her daughter, who was “shocked” by the total.
And this is where the real work begins.
Welcome back to the Triple Win Newsletter! I’m Brandy Landon, and today we’re going to peel back the curtain on a difficult topic: how to prepare for high-balance dispositions, how to handle the emotional and often tense conversations that follow, and how to navigate disputes, settlements, and payment plans with clarity and confidence. My goal is to help shed light on a process that can feel overwhelming even for seasoned pros, and give you practical strategies to protect your owners, guide your residents, and support your team when deposit shortages happen.
A move-out disposition doesn’t actually begin at move-out—it begins the day your residents receive their keys. The way you document, communicate, and set expectations on the front end is what sets the tone for everything that follows.
The truth is, the best outcomes happen when PMs start early:
Most disputes don’t come from residents trying to be difficult—they come from residents being caught off guard. When you eliminate the element of surprise, you eliminate half the battle.
Proactive preparation doesn’t guarantee smooth move-outs, but it gives you a strong foundation. And when you’re grounded in airtight documentation, your confidence during tough conversations changes everything.
When the guarantor called me that day, I could hear the fear and confusion in her voice.
“My daughter said she left the house in good condition. She’s devastated.”
This is the moment where experience really matters.
Instead of mirroring their emotion, you anchor the conversation in clarity and neutrality.
You walk them through the facts:
Most people soften quickly once they realize you aren’t there to argue—you’re there to guide, explain, and help them understand the full picture.
And transparency is a PM’s greatest tool. Show everything:
When people see the evidence, the conversation shifts. They may not love the outcome—but they understand it.
After we finished reviewing the documentation together, the guarantor finally took a breath and said, “I want to make this right… but I can’t pay it all at once.”
This is the moment where PMs can shift a situation from conflict to collaboration.
Offering structured options—clear, short-term, and documented—completely changes the tone of the conversation:
Payment plans aren’t about being lenient—they're about increasing the likelihood of collection and giving residents a realistic, manageable path forward.
In this case, we negotiated a settlement agreement. It was a win for the owner, who recovered most of the repair costs, and a win for the resident, who received some relief on the total balance and avoided the stress of collections.
Here’s the hard truth every PM learns sooner or later:
Even the best systems can’t prevent every resident from causing damage.
Some residents will dispute everything.
Some will push back simply to avoid responsibility.
Some will swear the home was spotless—even while looking at photos that prove otherwise.
Our job isn’t to prevent every bad outcome. Our job is to navigate those outcomes professionally when they happen.
You protect owners through:
You protect residents through:
And you protect yourself through:
This is the unspoken work of property management.
It’s not glamorous.
It’s not often celebrated.
But it is leadership.
And it’s in these moments—when the deposit isn’t enough, when emotions are high, and when tough conversations need to happen—that seasoned PMs truly shine. By approaching these situations with preparation, confidence, and fairness, you set the standard for what professional property management looks like.
Handled well, a difficult move-out doesn’t just become a win for the owner or a fair outcome for the resident—it becomes a reflection of your systems, your values, and the kind of steady leadership that strengthens your company’s reputation and builds trust that lasts far beyond a single lease cycle.
Brandy Landon
Broker/Owner
All things property management in the news these past two weeks:
Triple Win LIVE: Becoming a Smooth Operator in 2026
December 16 • 2:00–3:30 PM ET
If you’re craving a steadier, more predictable 2026, this one’s for you. Kandise Varvil and Adam Willis are joining Andrew Smallwood to share the simple systems and communication habits that keep their teams calm, clear, and running without the constant “wait… who’s doing what?” moments.
We’ll hit the big stuff — documenting what matters, cleaning up communication loops, avoiding the usual operational potholes — and give you a few practical moves you can put to work in January.
We still have a few tickets left for Elevate Sales Kickoff in Nashville, TN! We're sponsoring 10 lucky property management leaders who want to learn how to grow their business.
Spots are limited and not guaranteed — applicants will be selected based on availability after attending a 30-minute intro call with Second Nature, no purchase necessary.
Looking to add ancillary services to your business? Kandise Varvil from PM PathBuilders talks added services offerings over on the blog.
Read all about the top leadership training programs for property management business leaders on the Second Nature blog.
Until next time,
The Second Nature Team