As a landlord, you require renters to sign a lease for a certain duration before moving into your units. Renters may opt to move out when the agreement expires or even before, so you may continuously be looking for new occupants. As such, you need to properly manage the apartment turnover between a former and new tenant. First, you need to understand the process and apartment turnover costs as they can impact the success of your business.
What is apartment turnover?
Apartment turnover is the process of performing maintenance work on a house or apartment when a renter vacates it and then proceeding to sign another contract with a new renter. When the property is still vacant, you may accrue other bills, such as cleaning costs, although rent remains uncollected during this period. It is best to keep the turnover period brief to keep make-ready costs minimal.
Consider your average rental turnover rate, which is the percentage of renters who vacate after the lease agreement expires, to plan your budget accordingly and accurately predict the amount of money required for apartment turnover costs. According to the National Apartment Association (NAA), the turnover rate has been going down since 2018, a big improvement for the real estate industry. However, it would be best to prepare yourself for this inevitable change.
Apartment Turnover Checklist
Preparing for turnover is vital for property managers to efficiently generate higher rent for their units. Complete the process by taking these 6 steps:
1. Inspect the Apartment
Perform a walkthrough of the apartment to check for wear and tear or other damages. Use your records to determine the extent of the repairs and the money you can deduct from the previous renter’s security deposit. There is no need for the former renter to be present for the inspection, but always document all damages using invoices, photos, and videos. Keep the receipts for all repairs done as well.
It’s also prudent to take utility readings during the final walkthrough. Call the water, electricity, and gas providers to ensure there are no pending bills and the new renter can access utilities immediately.
2. Perform Repairs
Schedule visits for repair estimations as soon as your renter submits a vacation notice. For example, it would be best to book an appointment with a professional painting or cleaning company a few weeks before the renter moves out to save time and money. You can start and finish the repairs quickly when you already have the essential service providers scheduled. Furthermore, you can reduce the average apartment turnover rate by getting new renters for vacant units quickly.
Some areas to check when doing repairs include:
- Drainage leaks and clogs
- HVAC equipment
- Water damage
- Faulty appliances
- Broken doors and windows
- Smoke detectors
- Countertops
You can also make any renovations you deem fit to raise the unit’s rent value, especially if the previous renters lived there for years or the market value has risen.
3. Clean the Apartment
Clean the apartment after completing all repairs. Professional cleaners can make the apartment safe and fresh for the next renter. Keep in mind that different states have various laws regarding the maintenance of cleanliness on rental properties.
Depending on the carpet’s condition, you can either use a shampoo product or vacuum it clean. Deep cleaning the carpet is essential, especially when your units are pet-friendly, as it reduces odors and controls pests.
4. Advertise the Property
Advertise online to reduce the average apartment make-ready cost. Once you sign up with a free listing service for your apartment, it becomes easier to find new renters and fill up empty units. Other than posting online ads, you can also use traditional marketing techniques cost-effectively. For example, if your unit is in a high-traffic area, such as near a university or hospital, you can use newspaper ads, flyers, and posters.
A great ad can yield results within a short duration because it targets ideal renters. Be clear about your screening process and qualification requirements for new renters for the best results.
5. Change the Keys or Locks
It’s advisable to change the keys or locks once a renter moves out to ensure safety for the new ones. Performing this step during apartment turnovers ensures only authorized people can go inside the units, eliminating any potential break-ins or lawsuits.
You have several solutions when it comes to changing locks, including:
- New doorknob and key set: This is an ideal option if there are extensive damages to the locks and you need to replace them entirely.
- Re-keying existing locks: A cheaper alternative is to re-key the existing locks if their mechanisms are still functional and strong.
- Smart keys: With these smart products, you can re-key the locks in a few minutes by simply inserting a smart tool and resetting the key using the technology.
- Electronic locks: Although this option is the most expensive due to the initial installation cost, you only need to change the codes on the number pads between renters.
Always have a spare key or the access codes in case your renters get locked out or you require gaining entry to the apartment due to emergency repairs or routine inspections.
6. Keep Up-to-Date Records
Recordkeeping can reduce the average apartment make-ready cost in the long term. The basic upkeep costs for cleaning and other types of maintenance work can accumulate quickly, especially for units with high turnover rates. Tracking such expenses offers access to vital information for making wise business decisions. For example, you can accurately determine the turnover rate from your records in case you would like to upgrade your apartment and raise the rent.
Furthermore, good recordkeeping can help reduce turnovers altogether by enabling you to increase renter retention. You can check your records to establish why your renters are moving out without renewing their leases. The records can tell whether you require routine maintenance, upgrading your units, writing a welcome letter, allowing pets, or ensuring a quiet neighborhood to keep your renters for longer.
The process of apartment turnovers is easy when you follow these tips because you can efficiently transition between renters and maintain full capacity in your units. Remember, the overall goal is ensuring that your prospective renters envision your units as their homes.
Related content
