“They’re just renters.” or “It’s only a rental.” These are phrases we often hear used to justify doing less than quality work inside a rental property. The logic seems to be that spending less money on making a home ready will save money for the investor. We believe the opposite…ensuring your rental property is in great condition between residents may be a short term expense but actually increases long-term profitability. A comprehensive turnover process helps maintain the property's value, attracts quality residents, and ensures safety and resident satisfaction. We prefer to give homes to residents in great condition because it is better for an investor’s long term financial health, not in spite of it.
A property manager’s top priority is ensuring that a client’s investment remains profitable and in excellent condition. One crucial aspect of this is the turnover process. Rental turnover encompasses all the tasks needed to get a property ready for a new renter. It goes beyond routine property maintenance and often requires a few workdays to get the unit in perfect shape for a new resident. Although the expense of making a property ready can be high, it is vital to the long term bottom line.
There are a few key components to a successful turnover:
1. The Move-out of the Current Resident
2. Getting the Property Rent-ready
3. Marketing and Leasing the Property to a New Resident
The turnover process begins with a detailed walkthrough of the property to determine what the previous resident should be charged for and what work needs to be done to prepare it for the next resident. This work typically includes:
Painting
Cleaning
Carpet cleaning
Ensuring all appliances are functioning properly
Replacing broken blinds, air filters, light bulbs, etc.
Checking for leaks
Ensuring drains are functioning properly
Repairing any damages caused by the previous resident
Confirming that smoke detectors, carbon monoxide detectors, and fire extinguishers are installed and working properly
While this process can be a significant expense, it’s an investment that pays off in the long run. Here’s why:
1. Efficiency and Profitability
Vacancy is the largest avoidable expense a property owner can experience. Efficient turnover processes can significantly reduce the time a property stays vacant, which directly impacts profitability. A streamlined process ensures that the property is quickly prepared for new residents, minimizing the loss of rental income during vacancies.
2. Resident Satisfaction and Retention
Maintaining a high standard of property condition through a thorough turnover process can improve resident satisfaction, which in turn can reduce turnover rates. Happy residents settle in faster, take better care of the home while they live there, and are more likely to renew their leases. All of this eliminates vacancy and reduces the costs associated with finding new renters.
3. Accountability through Documentation and Inspections
Conducting thorough move-in and move-out inspections with detailed documentation helps in assessing any damages and charging them against the security deposit if necessary. This creates a clear record of the property’s condition, aiding in dispute resolution and maintaining transparency with residents.
4. Long-term Property Value
Regular maintenance and prompt repairs during turnover help in preserving the property’s long-term value. Addressing small issues before they become major problems ensures the property remains desirable and can command competitive rental rates. When it comes time to sell, a properly cared-for home will fetch higher prices on the open market than one that has deferred maintenance.
5. Encouraging Residents to Care for the Property
Residents are more likely to value and take care of a home that was provided to them in good condition. When they see that the property is well-maintained, they are more inclined to treat it with respect, leading to fewer damages and maintenance issues over time.
6. Ensuring Safety
A thorough turnover process also ensures the safety of the home. By checking all appliances, smoke detectors, carbon monoxide detectors, and other safety features, we make sure the property meets all safety standards, providing peace of mind for both you and your residents. Legal action resulting from unchecked safety issues is a fast way to get put out of business as a property owner.
While the turnover process may seem like a large expense initially, it is an essential investment in the long-term profitability and sustainability of your rental property. By maintaining a high standard of care, you help ensure happy residents, fewer vacancies, and a profitable return on your investment.
Looking for a great property manager to handle all of these steps for you? Contact us today to talk about what we can do for you!
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