Tenant turnover is a process that can create large expenses for your property rental business. The uncertain time period it takes to find a new tenant for a specific rental unit can bring along several costs that you might not always expect. If you identify these potential costs ahead of time, you can better prepare for them as a landlord or property owner.
A major and immediate expense after a vacancy is deep cleaning. Even if a tenant does his or her best to keep the rental unit clean, there are going to be some areas of improvement or some spots they might have missed. Also, you will need to keep the unit in pristine condition for any demonstration. Hiring a cleaning contractor to conduct a deep clean can be expensive, particularly for a long period of time, so keep this in mind.
Repair and Maintenance Expenses
Just as you need to keep the rental unit clean, it should also stay free from any potential damage. Even the best tenants may cause some minor bumps or scratches in the walls, floors, or other parts of the house. Alternatively, tenant turnover is a great opportunity to conduct any repair and maintenance to the unit, since the place will be empty, and it will not inconvenience anyone. Either way, expect to spend a significant amount of money on both repair and maintenance for the property.
Paperwork and Administrative Costs
Vacancy turnover also creates plenty of paperwork, and along with it, more costs. Move-out paperwork, lease agreements, document processing, and applicant screening will cause photocopying, printing, and processing expenses. Consider turning to electronic paperwork, if possible.
Lack of Income
The vacancy of the property doesn’t just cost you money on cleaning and maintenance, but it will also take away from your rental income. You will not have the usual funds you receive from rent collection until a new tenant moves in. This might not be as impactful if you own a larger apartment building or a multifamily complex. However, owning a single-family property or smaller multiunit operations will make the lack of income more noticeable and impactful.
Whether you are a more involved landlord or prefer to keep matters at bay, showing off the property for any potential tenants will cost you a considerable amount of time, resources, and money. You or the property manager may have to drive back and forth to show the property to the potential tenant, which can also create expenses for the tenant. You must also consider the expenses for listing the property. If you demonstrate the rental unit to the tenant, and the tenant refuses, it will only mean the process was a bigger time and money sink than necessary. Make arrangements for these possibilities, and if possible, consider holding online demonstrations.
Home365 offers OneRate pricing for extensive property management services, which is specific to your property, provides full coverage, and has one flat rate, saving you up to 50% more compared to other property management options. Tenant turnover services are included in this coverage. Contact us today to get a free quote for your property.