Turnover Time: What’s Average?
Knowing the average turnover time for property rentals is key to setting a benchmark to improve your processes.
A turnover period starts at the departing residents’ move-out inspection. This is when a property is examined and any damage and necessary repairs are identified. The turnover period ends on the date of the property’s final quality inspection. By this point, the repairs have been completed and the unit is declared ready for rent.
Turnover Time: Swift or Sluggish With Little Room Between
In 45% of the property management companies we studied, the average turnover period lasted less than 9 days. The largest segment within this group completed their turnover within five and seven days, with 31% of the turnovers taking less than seven days. Not too shabby, we’d say.
On the flip side, property turnovers for 49% of the companies studied lasted nine days or longer, with 35% of those companies taking 13 days or longer. In general, if a company missed the nine-day mark, it was a good bet they’d take two weeks or longer to complete the turnover.
Overall, companies were either agile, turning over a property within seven days (31%), or sluggish, taking more than two weeks between the move-out inspection and final, “rent-ready” inspection (35%).
What of the remaining 6%, you ask? They reported having no clue as to how long their turnover periods last. Yikes. Perhaps more surprising, only 71% of property management companies reported even conducting a final quality inspection.
What factors impact turnover time?
1) Time-consuming repairs
In 53% of the companies studied, they reported tackling the time-consuming task of replacing the carpet or floor. The majority of this work was done on multi-family properties but a surprising number of single-family homes also sided with replacing, rather than cleaning, the floors.
But the stat we believe gets to the heart of the discrepancy is subtle, simple and we think, rather telling.
Overall, 63% of property management companies reported having a discussion with their owners and investors about improving the property. This includes general upgrades like replacing an old dishwasher or large-scale renovations like redoing the entire kitchen.
2) Owner Estimates and Communication
73% of the companies with turnover periods longer than nine days reported having a discussion with their owners. On the other hand, just 27% of companies that took less than nine days reported not having these discussions.
These communications with owners can be time-consuming and impact the turnover timeline. Additionally, collecting estimates for major repairs can be mundane.
Why is turnover time important?
A faster turnover timeline reduces a property’s vacancy rate which means less income gap for your owners and investors.
Check out our blog on rental turnover and the 3 effects of poor processes to learn more about the financial impact of turnovers.