HUD Handbook 4350.3 § 6-29
Unit Inspections (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. Overview
1. The move-in inspection is an opportunity to familiarize the tenant with the
project and the unit, as well as to document its current condition. By
performing move-in inspections, owners and tenants are assured that the
unit is in livable condition and is free of damages. A move-in inspection
gives the owner an opportunity to explain to the new residents the
tenant’s responsibility for damages caused to the unit by family members
and visitors, discuss the house rules, and familiarize tenants with the
operation of appliances and equipment in the unit.
2. Upon the unit being vacated by the tenant, an owner performs a move-out
inspection to ensure there are no damages to the unit. The owner should
list the damages on the move-out form and compare it with the move-in
form to determine if the damage is reasonable wear or tear or excessive
damage caused by the tenant's abuse or negligence. The tenant should
be given prior notice of the move-out inspection and be allowed to
accompany the owner if the tenant chooses. Ideally, the tenant should
accompany the owner on the move-out inspection so that any
discrepancies can be discussed and a decision reached as to the extent
of the damage and who is responsible for the cost associated with the
damage.
3. Move-in and move-out inspection forms should not be confused with
annual unit inspections performed by owners and physical inspections
performed by HUD and/or HUD contractors. Owners perform unit
inspections on at least an annual basis to determine whether the
appliances and equipment in the unit are functioning properly and to
assess whether a component needs to be repaired or replaced. This is
also an opportunity to determine any damage to the unit caused by the
tenant's abuse or negligence and, if so, make the necessary repairs and
bill the tenant for the cost of the repairs.
4. HUD, or its authorized contractor(s), has the right to inspect the units and
the entire property to ensure that the property is being physically well
maintained. These inspections assure HUD that owners are fulfilling their
obligations under the regulatory agreements and/or subsidy contracts and
tenants are provided with decent, safe, and sanitary housing.
B. Key Requirements
1. Owners in all HUD-subsidized multifamily properties are required to
complete move-in and move-out inspections.
2. Owners must document these inspections. (See Appendix 5 for a
sample unit inspection report.)
3. Owners may design their own inspection forms.
C. Move-In Inspection Requirements
1. Before executing a lease, the owner and tenant must jointly inspect the
unit.
2. After the owner conducts a unit inspection, the inspection form must
indicate the condition of the unit. The condition of the unit must be decent,
safe, sanitary, and in good repair. If cleaning or repair is required, the
owner must specify on the inspection form the date by which the work will
be completed. The date must be no more than 30 days after the effective
date of the lease.
3. Both the owner and the tenant must sign and date the inspection form.
The inspection form must include the statement, “The unit is in decent,
safe and sanitary condition”.
4. The tenant has 5 days to report any additional deficiencies to the owner
to be noted on the move-in inspection form.
5. The move-in inspection form must be made part of the lease, as an
attachment to the lease.
D. Move-Out Inspection Instructions
1. Owners are advised to encourage tenants to accompany them on the
inspection. Upon a tenant's request, he/she must be allowed to attend
the move-out inspection conducted by the owner. If a tenant is with the
owner during the inspection, disagreements between the owner and the
tenant regarding unit damage can be resolved up front.
2. If a tenant does not wish to participate, the owner may do the inspection
alone.
3. HUD does not provide move-out inspection criteria. It is at the owner’s
discretion to develop criteria to distinguish between wear-and-tear and
damage. If an owner determines that the unit is damaged as a result of
tenant abuse or neglect, he/she may use the security deposit to cover the
repair costs. (See Section 2: Security Deposits for more information.)
Example – Wear-and-Tear Versus Damage
Wear-and-tear: The carpet is worn and has reached the end of
its useful life.
Damage: A relatively new carpet has rips and tears.HUD Handbook 4350.3 REV-1 CHG-4 § 6-29 establishes a structured inspection framework for HUD-subsidized multifamily housing covering move-in, move-out, and annual unit inspections. Before a lease is signed, the owner and tenant must jointly inspect the unit and document its condition as decent, safe, and sanitary on a signed form that becomes part of the lease. Separately, HUD or its authorized contractors retain the independent right to inspect properties to verify that owners are meeting their obligations and that tenants are receiving safe, habitable housing.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 6-29, compliant operators in HUD-subsidized multifamily properties conduct a joint move-in inspection with each incoming tenant before the lease is executed, document the unit's condition on a signed form that is attached to the lease, and give the tenant five days to report any additional deficiencies. At move-out, operators provide the tenant with prior notice of the inspection and allow the tenant to attend if requested, then compare the move-out form against the move-in form to distinguish normal wear-and-tear from damage attributable to tenant abuse or neglect. Owners also perform at least annual unit inspections to assess appliance function and identify any damage, and they maintain documentation throughout, as HUD or its contractors may conduct their own independent property inspections at any time.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Handbook 4350.3 REV-1 CHG-4 § 6-29 gives tenants in HUD-subsidized multifamily housing the right to jointly inspect their unit with the owner before signing a lease, to receive a copy of the signed inspection form as a lease attachment, and to have five days after move-in to report any additional deficiencies in writing. At move-out, tenants are entitled to prior notice of the inspection and, upon request, must be allowed to accompany the owner so that any disagreements about damage versus normal wear-and-tear can be addressed on the spot. Tenants who believe these inspection rights have not been honored may contact the U.S. Department of Housing and Urban Development directly or reach out to a local tenant-rights organization to understand available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 5, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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