Tenant turnover is inevitable with investing in rental properties so it is essential to have an efficient process in place for tenant turnover. Being prepared will save you time and money.
What is tenant turnover?
When your tenants move out of your rental property, the process of getting the rental ready for a new tenant is called tenant turnover. The tenant turnover consists of:
- the move-out
- getting the property ready to rent
- marketing
- leasing process
You want to make the turnovers as efficient and fast as possible because every passing day the property is vacant you lose money.
The first thing is giving tenants a clear description of what is required of them when moving out of the rental property. This includes what cleaning is required, where to return their keys, etc. The more clear you are with your expectations, the less work you will have to do after the move-out is completed. It will also lead to an easier time refunding the security deposit. We provide our tenants with a list of what is considered wear and tear (owner responsibility) and what is considered damage or cleaning (tenant responsibility). For example, we provide them with a home with all light bulbs working, carpets professionally cleaned, and clean air filters. We expect the home to have these items in the same condition upon move-out.
How do I prepare my rental for the turnover?
Complete a move-out inspection
Some states legally require a move-out inspection, so make sure you check your state’s landlord/tenant laws. We would highly suggest even if you are not legally required to conduct one—still do it. Inspections are beneficial to both the landlord and tenant. Once the tenant is moved out, look for any damage that is not normal wear and tear or any unapproved changes to the unit. Be sure to document the condition of the property by taking photos. You can compare these photos to the move-in inspection photos to easily ascertain if there is any new damage or pre-existing damage. Possessing photos from the move-in inspection alleviates most disputes from tenants. While walking the property during the move-out inspection, make a list of issues needing to be repaired. This way it will be easy to determine the repair costs and you will know how much money will be taken from the security deposit.
Once the tenant moves-out, it is time to manage the repairs. First, catch up with any maintenance issues and complete any major repairs. You may have to repaint the interior of the rental property if necessary, but if not adding touches up to the paint will go a long way. The next step is to deep clean. We suggest a professional cleaning service especially for carpets unless you are replacing them completely. If you are looking to increase the value of your property, you can utilize this time to complete upgrades including new bathrooms, countertops, cabinetry, and new appliances.
If you have a property manager, this entire process is handled efficiently and professionally for you. At CRM Properties, we make the necessary repairs and ensure the property is ready to rent as quickly as possible to ensure securing a qualified tenant with the least possible downtime.