When it comes to rental turnovers, one of the most time-consuming aspects is coordinating all the services that need to happen before a unit is ready for a new resident. In this article, we will break down the rental turn process from start to finish so that you can plan and get a plan in place for the upcoming turn season.
A make-ready process begins when a resident provides their 30-90 day notice that they will not renew their lease. To ensure your residents provide proper notice, ensure your “notice to vacate date” is outlined in the signed lease. This way, you can ensure there is ample time to find a new resident.
After your resident has voiced their intent to move, it is time to conduct a move-out inspection. A move-out inspection is when landlords and renters walk through the property to identify any damages or unapproved changes to the property. When new residents move into a rental, they often fill out an inspection checklist to identify any existing damage. This is an essential part of the move-in process so landlords can reference it during a move-out inspection. Any damages not listed on the initial inspection may be removed from the resident’s security deposit.
Normal wear and tear is an expected part of renting. Still, if a resident has caused costly damage that requires extensive repairs or renovations, they may lose a portion of their security deposit to pay for the damages. Move-out inspections are essential for many reasons. First, it can help you avoid disputes with your renters. If you deduct maintenance charges from your resident’s security deposit without explaining why, they may try and dispute it. A move-out inspection allows landlords to talk through issues with their renters. This way, you can explain what damages the resident is responsible for and why. If your resident understands why they are being charged, they are less likely to dispute the charges.
In some cases, after a move-out inspection is conducted, property managers may allow residents to fix the damages themselves without losing money from their security deposit. This is not always recommended, as the property management company doesn’t have control over the work being done. If you allow residents to fix damages, ensure they use a reputable vendor and that the work is done to your standards.
After conducting the move-out inspection, ensure you have discussed with your resident when they must be fully moved out of the property. This includes moving all personal items out, conducting any necessary move-out cleaning, and returning property keys. Once your resident is fully vacated, you can prepare the unit for a new renter.
Top 10: Make-Ready Checklist
1: Clean the property:
The first step to a successful turnover is deep cleaning the property. This includes thoroughly cleaning floors, windows, surfaces, and appliances. The cleaner the property, the happier your new resident will be, starting the relationship on the right foot.
2: Repair any damages:
Before a new resident moves into a property, you must repair any damages caused by the previous resident. This includes patching holes in the walls, replacing broken windows and doors, fixing broken toilets, and repainting walls if needed. If a resident caused this damage, you might be able to use some of their security deposit to pay for these repairs.
3: Complete necessary maintenance:
Ensure all unit equipment works well before a new resident moves in. Replace the filters on HVAC systems, inspect kitchen appliances, and test the plumbing and electrical systems. In addition, make sure to test the fire alarm and carbon monoxide detector and replace the batteries if needed. This is also a great time to look into setting up preventative programs!
4: Replace any broken or outdated items:
If your properties are furnished, replace any outdated or damaged furniture. If the carpet is stained, it may need to be replaced, and ensure all appliances are in good working condition. Updating any of these items can also give cause to increase rental fees.
5: Update the rental listing:
Take new photos of the unit and update the description of your unit before listing the property for rent.
6: Advertise the property:
Look into online channels for advertising your property. You may also look into other marketing channels based on your location and ideal resident. For example, if you are trying to attract older residents, you may prefer to advertise in a local paper instead of an online rental platform.
7: Meet with new residents:
Conduct thorough background and credit checks when meeting with prospective residents. If they have rental history, you can connect with their past landlords to learn more about them and determine if they are a good fit for your property.
8: Negotiate the lease:
Once you have decided on a new renter, you should meet with them to go over the lease. In this meeting, you will discuss rent, security deposit, and pet policies. Ensure any unique policies in your lease are communicated with your new resident to avoid any disputes. The resident and the landlord should receive a copy of the signed lease.
9: Collect the security deposit and first month’s rent:
After both parties have signed the lease, the resident should pay their security deposit and first month’s rent. This is typically done right before the new resident moves in.
10: Conduct a move-in inspection:
Schedule a time with your new resident to conduct a move-in inspection. This should be conducted right away after they move in. This is a walk-through of the property to determine its state. Residents may note any damages or imperfections at the property. This is used to determine the property’s condition when they moved in so you can evaluate any damages caused by a resident during their time in your property.
Why is turnover speed important?
According to our data, 45% of the property management companies we spoke with complete their turns in 9 days or less. The quicker you can complete a turnover, the better. Why? The longer a unit sits vacant, the more money you and your property owners lose. Owners and investors can lose thousands of dollars from a team sitting empty for 14 days. Check out this article to figure out the exact costs of a vacancy. In addition, we know that many businesses are struggling with staffing maintenance technicians and third-party vendors.
Rental turnover tasks can be time-consuming and mundane for your staff, taking time out of their day to be better spent elsewhere. Lastly, resident churn is directly tied to owner churn. The happier your residents are, the more likely they are to renew their leases. The less turnover you have, the more money your owners will make and the happier they will be. Keeping your turnovers closer to 0 will improve owner satisfaction. Lowering the number of turnovers will result in happier owners.
Factors that affect turnover rate
As we mentioned, poor maintenance processes are one of the most common reasons a resident decides to move, but there are also factors to keep in mind that aren’t directly related to the services you provide. Depending on the state of the housing market and interest rates, more people may decide they want to own a home. Industry data shows that areas with a low median and high job growth tend to have lower retention rates because residents change jobs more frequently.
Another great way to retain residents is to upgrade your properties with the amenities your renters want. According to industry data, these are the top five amenities renters seek in their homes.
Top Five Amenities for Renters
1- High speed internet
2- Walk-in closet
3- Soundproof walls
4- A balcony or patio
5- In-unit washer and dryer
These upgrades can help you attract new residents and keep your current residents longer, leading to lower turnover rates.
Understanding standard rental turnover services and costs can help you better prepare to deal with rental turnover. Although turnover is an unavoidable part of property management, you can take steps to lower your turnover rate and ensure turns go as smoothly as possible.
With designated maintenance software, you can keep track of all tasks associated with turns.In addition, you will be able to see your average turnover rate and what you can do to improve those key metrics. With software designed specifically for maintenance, turns are easier to manage, and your residents and owners will be happier.
Schedule a demo to improve your maintenance metrics.
