{"id":8193,"date":"2017-09-11T16:37:52","date_gmt":"2017-09-11T23:37:52","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=8193"},"modified":"2022-05-26T11:36:33","modified_gmt":"2022-05-26T18:36:33","slug":"much-tenant-turnover-really-cost","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/much-tenant-turnover-really-cost\/","title":{"rendered":"How Much Does Tenant Turnover Really Cost?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-8200\" src=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/09\/How-much-does-Tenant-Turnover-really-cost-.png\" alt=\"Tenant Turnover Cost\" width=\"560\" height=\"315\" srcset=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/09\/How-much-does-Tenant-Turnover-really-cost-.png 560w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/09\/How-much-does-Tenant-Turnover-really-cost--300x169.png 300w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2017\/09\/How-much-does-Tenant-Turnover-really-cost--352x198.png 352w\" sizes=\"(max-width: 560px) 100vw, 560px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Tenant turnover is the process of getting a rental property ready for a new tenant after a lease expires and your previous tenant moves out. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Property managers and landlords need to make the turnover as efficient as possible to minimize the time the property is unoccupied. Every day that a property sits vacant is a day the <a href=\"https:\/\/www.rentecdirect.com\/blog\/end-rental-vacancy\/\">property collects zero rental income<\/a>. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not only does the cost of vacancy eat into your cash flow but the time and money it takes to prep a property for the next occupant can add up quickly.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Here\u2019s a look at all the costs associated with Tenant Turnover. <\/span><\/h3>\n<ul>\n<li style=\"padding-left: 30px;\"><span style=\"font-weight: 400;\"><strong>Administration Costs<\/strong><br \/>\n<\/span><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Time is money in most industries, and property management is no exception. \u00a0When it comes to budgeting tenant turnover, you need to factor in the administrative time it takes to market your newly vacant property, process move-out paperwork, coordinate repairs and cleaning services, screen new applicants and process lease agreements for future tenants.<\/span><\/span>&nbsp;<\/li>\n<li style=\"padding-left: 30px;\"><span style=\"font-weight: 400;\"><strong>Marketing Costs<\/strong><br \/>\n<\/span><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Some online rental ads are free to use for posting your rental vacancy, others require a small fee. If your property remains vacant after posting a rental ad online, you might have to go old school with printed flyers &amp; signs or newspaper ads. Printing or purchasing a print ad will all add to your bottom line.<\/span><\/span>&nbsp;<\/li>\n<li style=\"padding-left: 30px;\"><span style=\"font-weight: 400;\"><strong>Showing Costs<\/strong><br \/>\n<\/span><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A serious rental prospect will most likely want to see a property before signing a lease agreement. Coordinating a property showing will take time and travel expenses to and from the property to meet tenants can add up.<\/span><\/span>&nbsp;<\/li>\n<li style=\"padding-left: 30px;\"><span style=\"font-weight: 400;\"><strong>Application Processing<\/strong><br \/>\n<\/span><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A good landlord will collect a rental application and review all the necessary <a href=\"https:\/\/www.rentecdirect.com\/tenant-screening\">tenant screening<\/a> reports to make sure the applicant is financially responsible, law abiding, has verifiable income and a positive rental history. Credit, criminal, and eviction reports cost money, which a landlord will typically recoup with an application fee.<\/span><\/span>&nbsp;<\/li>\n<li style=\"padding-left: 30px;\"><span style=\"font-weight: 400;\"><strong>Cleaning Costs<\/strong><br \/>\n<\/span><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You should always start off each tenancy with a clean slate and a clean property. The better condition your property is at the start of tenancy, the better your chances are that your tenant will take care of it. If your old tenant left the property with dusty blinds, trash in the bin, stains on the carpet, or any number of potential messes, you will be tasked with cleaning up the property before the next lease begins.<\/span><\/span>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">While you might be able to use the previous tenant\u2019s security deposit for cleaning costs, some cleaning, like normal wear and tear, or replacing a carpet that has outlived its use, will be your financial responsibility.<\/span><\/span>&nbsp;<\/li>\n<li style=\"padding-left: 30px;\"><span style=\"font-weight: 400;\"><strong>Repair Costs<\/strong><br \/>\n<\/span><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Turnover can be the perfect time to update old property fixtures or coordinate repairs for maintenance that had gone unnoticed during the previous tenancy. \u00a0Repairs cost money and major repairs, like new flooring, will delay the move-in date of your next tenant, increasing the amount of time you go without rental income.<\/span><\/span>&nbsp;<\/li>\n<li style=\"padding-left: 30px;\"><span style=\"font-weight: 400;\"><strong>Lost Income<\/strong><br \/>\n<\/span><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The longer your property sits between leases, the longer you will go without rental income. If you are relying on your rental income to cover a mortgage payment, you could notice a serious hit your reserve funds until you find a new tenant.<\/span><\/span>&nbsp;<\/li>\n<li style=\"padding-left: 30px;\"><span style=\"font-weight: 400;\"><strong>Disgruntled Tenant Costs<\/strong><br \/>\n<\/span><span style=\"font-weight: 400;\">If a tenancy ends on bad terms, there is the potential for damage that goes beyond normal turnover tasks. <\/span><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A disgruntled tenant can ruin property fixtures that will require extremely expensive repairs.<\/span><\/span>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If the tenancy ends with an eviction, you could face extra challenges and expenses if you have to go to court to collect the money owed to you. In some cases, even if a judge rules in your favor, the tenant might have no money to pay you and repair costs will be entirely on you. \u00a0<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">How to Prevent Tenant Turnover<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When you consider this list, it makes sense that the most profitable option for your investment is to keep the same tenant as long as possible, to avoid turnover at all costs. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">While you won\u2019t be able to stop a tenant from moving out of town for a new job or to be closer to family, preventing local moves is the best way to keep vacancies at a minimum. \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Maintain a positive landlord-tenant relationship with good communication and timely response to tenant requests. \u00a0Keep your rent priced at a fair market value and keep up on maintenance and property features.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best way to avoid disgruntled tenant damages and expenses is by screening your tenants. While some bad apples might slip through, checking a rental applicant\u2019s credit, criminal, and eviction reports gives you the most accurate information to make an informed decision about what kind of renter they will be. Avoid all tenant screening red flags at all costs and make sure to follow <\/span><a href=\"https:\/\/www.rentecdirect.com\/blog\/fair-housing-act\/\"><span style=\"font-weight: 400;\">Federal Fair Housing Laws<\/span><\/a>.<\/p>\n<h3><span style=\"font-weight: 400;\">Save Money During Tenant Turnover <\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Inevitably, even the best renters will decide to move and you will need to be prepared for the tenant turnover process and costs. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can evaluate which items you can accomplish while the property is still occupied, to minimize the number of tasks you need to do when a property is vacant. Things like marketing and application processing can all take place before a property is vacant. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your cleaning and repair tasks are minimal you might be able to move one tenant out, and have the next one move in the following day. Hello, zero vacancy and maximum rental income!\u00a0<\/span><\/p>\n<p style=\"padding-left: 30px;\"><strong>Move-Out Inspections<\/strong><\/p>\n<p style=\"padding-left: 30px;\"><span style=\"font-weight: 400;\">Do a move-out inspection prior to your tenant vacating the unit. <\/span><span style=\"font-weight: 400;\">Set up a time to do a walk-through with your tenant so you can point out areas that need to be cleaned or fixed by your tenant. \u00a0This step will help your tenants take an active approach to getting the property back to the condition it was when they moved in. \u00a0<\/span><\/p>\n<p style=\"padding-left: 30px;\"><span style=\"font-weight: 400;\">You can also take this time to make a note of what additional maintenance you will need to do once the unit is vacant. \u00a0Check out these suggestions on how to help your <\/span><a href=\"https:\/\/www.rentecdirect.com\/blog\/how-to-help-your-tenants-get-their-security-deposit-back\/\"><span style=\"font-weight: 400;\">renters get their security deposit back<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Tenant Turnover Takeaways<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Best case scenario, you will find a long-term, reliable tenant who pays rent on time and takes care of the property, with no intention of moving. \u00a0But if one of your tenants does decide to move out, understanding the true cost of tenant turnover will help you budget your expenses and manage the process more efficiently.<\/span><\/p>\n<hr \/>\n<h3>Related Reading For You:<\/h3>\n<ul>\n<li><a href=\"https:\/\/www.rentecdirect.com\/blog\/tenant-turnover-timeline\/\">How Long Does Tenant Turnover Take<\/a><\/li>\n<li><a href=\"https:\/\/www.rentecdirect.com\/blog\/implied-warranty-of-habitability\/\">What is the Implied Warranty of Habitability for Rentals<\/a><\/li>\n<li><a href=\"https:\/\/www.rentecdirect.com\/blog\/3-common-lease-violations\/\">3 Common Lease Violations Your Renters Will Definitely Make<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Tenant turnover is the process of getting a rental property ready for a new tenant after a lease expires and your previous tenant moves out. Property managers and landlords need to make the turnover as efficient as possible to minimize the time the property is unoccupied. Every day that a property sits vacant is a [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":8200,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[275],"tags":[884,779,606,761],"class_list":["post-8193","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","tag-renewals","tag-tenant-screening","tag-tenant-turnover","tag-turnover","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- 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