As Golden property managers, it’s always our goal to keep tenants in place for as long as possible. We know those lease renewals are better for your bottom line, and that’s why tenant retention is a priority for us.
But everyone is leading different lives, and the time will eventually come when your tenants decide to move on.
At that point, we have to focus on turning over your property efficiently. We want to move through the process of getting the home ready for the next tenant so there’s not a huge vacancy that grows expensive. We want to keep turnover costs down, too, so that you don’t spend a month’s rent just on maintenance and improvements.
Here’s how we do it. This is our guide for managing property turnovers efficiently.
The Importance of Efficient Turnovers in Golden
Efficient property turnovers are critical for several reasons:
- Minimizing Vacancy Periods. The faster you can get a property ready for the next tenant, the shorter your vacancy period will be, thereby maximizing your rental income. Vacancies can be a huge drain on you cash flow and ROI. There’s no need to leave your property unoccupied for even a day longer than necessary. You need to move through them quickly if you can.
- Maintaining Property Value. A proper turnover process is also an important way to protect the condition and value of your property. Regular cleaning and repairs keep your property in good shape. We want you to move through the turnover period efficiently, but not at the expense of thoroughness. This is part of protecting the value and condition of your investment.
- Tenant Satisfaction. A well-maintained living space attracts high-quality residents, reducing turnover rates and inspiring long-term rental relationships. You won’t attract high-quality tenants if you’re not offering a high-quality property. Turnover periods are the best time to ensure you remain competitive in the Golden rental market.
Efficiency leads to profitability. Make sure you’re prepared to get to work as soon as your departing tenant vacates.
Budgeting for Golden Rental Property Turnovers
Let’s talk about budgeting. We want to talk about the money that’s required because turnovers, we can tell you from experience, are often more expensive than you think they’ll be. This is especially true for self-managing landlords, and that’s due to a number of reasons.
- First, there’s always going to be a vacancy period. Even a week without rent coming in will be a disruption to your cash flow and your profitability.
- There’s also the cost of utilities, security, and upkeep such as landscaping and cleaning. These are out-of-pocket expenses for the rental property owner. When you don’t have tenants living in your property, there’s no one to pay the electric bill, the water bill, and the trash or sewer costs. Those will fall to you. It’s unreasonable to keep everything turned off because the vendors and contractors coming inside to paint, repair, and upgrade will need electricity. When prospective tenants come to see the home, they’ll want to turn on lights and sinks.
- Your property will likely feel a bit vulnerable, too, when it’s unoccupied. There’s no one living there to alert you to a leak that might have begun or a problem with the roof. You might want to install some security measures to ensure the property is safe. Security cameras, for example, or a video doorbell can be helpful.
Prepare for these fixed and variable costs during turnovers and transitions. Budget for the costs of vacancy as well as the repairs you may need and the general wear and tear issues that will need to be resolved.
Turnover Costs and Scheduling: Repairs, Replacements, and Upgrades
Once you have decided on the budget, you’ll have to turn your attention to the scheduling. How strong is your vendor network? Will they be ready to go to work for you when you need them?
You’ll use these turnover periods to make repairs and to consider investing in any upgrades and updates that your property may need to be competitive on the market. You’ll have to pay for any of the normal wear and tear that occurs during a tenancy. Your departing tenants will be accountable for any damage that was caused while they were in residence. It’s appropriate to pay for those repairs and replacements with the tenant’s security deposit. You have to make sure the damage is well-documented, otherwise you’ll be expected to pay for those repairs.
In order to save money and move quickly, you’ll want your vendors and contractors to get to work as soon as the property is vacant. Schedule them ahead of time. Be clear about what you need and how you want things to look by the time they’re done with their work.
This is an excellent time to make upgrades and updates. Think about the renovations and improvements that will increase your rental value and attract great residents.
Have your vendors and contractors ready to not only fix what might be broken but also to improve what may be deteriorating. Cost-effective upgrades and updates during the turnover period will allow you to set a higher rental value once you’re ready to list your property again. You’ll make these improvements efficiently, too, because you don’t have any tenants in place. Leverage this turnover process to repaint the walls, install new flooring, and maybe replace those old and deteriorating appliances.
Even small improvements to lighting, fixtures, and cosmetics will be a big deal to prospective tenants who see your property. You’ll keep your rental home competitive in a shifting Golden rental market. Tenants today are looking for energy-efficient appliances, video doorbells, hard surface flooring, and smart home technology.
Immediate Marketing and Advertising to New Tenants
Limiting your vacancy time is necessary in order to maximize what you earn on your rental property, so we recommend that you think about your marketing strategy even before your existing tenants move out.
If you have an impressive listing ready to go, and you know how to utilize the best online advertising sites and social media, you’ll be in a strong position to market your vacant home strategically. It’s also essential to be responsive to every potential tenant who calls with questions or to schedule a showing. All of this proactive marketing will ensure you have a shorter turnover period. If you wait a few days before listing the home for rent online and you’re slow to respond to inquiries, your turnover period will be a lot longer and far more expensive.
New marketing photos may be necessary for your listing. Your description may have to be updated. Get your marketing plan in place so you’re ready to list the home once it’s clean, repaired, and welcoming to potential tenants. Think of new ways to reach potential tenants. Invest in a social media presence. Consider self-showing technology. There are a lot of things you can do to attract new tenants quickly, and you should be thinking about those things as you’re turning over your rental.
Tips for Long-Term Efficiency
A well-maintained property is always easier and faster to turn over. So, make maintenance and regular check-ins a part of your ongoing management process. As Golden property managers, we have a standardized process in place that ensures consistency and efficiency when it’s time to turn over a rental property that we manage:
- We maintain checklists that keep us organized.
- We have documented procedures for common tasks so that anyone involved in our turnover process will know exactly what to do.
- There’s a regular and preventative maintenance schedule in place that is necessary to keep tenant turnovers efficient. We conduct careful and detailed inspections. We perform routine maintenance checks on HVAC systems, and appliances.
We also make sure our tenant communication is on point.
Good communication with your departing tenants can significantly impact the efficiency of turnovers. Make sure you provide move-out instructions that are clear. This should outline their responsibilities for cleaning and repairs. You’ll also want to offer that pre-move out inspection.
Efficient turnovers in Golden are essential for maintaining your property’s value, minimizing vacancy periods, and ensuring tenant satisfaction. By following these steps and implementing long-term efficiency strategies, you can streamline the turnover process and maximize your rental income.
We know that navigating the tenant turnover process can feel like a headache, but it does not have to be stressful. When you’re moving one resident out and another in, work with experienced Golden property managers. We can help you have a more affordable, more efficient turnover period.
Count on us to help you move out your existing tenant, reconcile the security deposit, and then begin preparing the home for a new tenant. We’ll take care of getting your property ready to rent and strategize the entire marketing and leasing process. We work quickly and expertly.
For help with your turnover process, please contact us at Laurel Property Services. In addition to providing property management in Golden, we also serve Wheatridge, Morrison, Lakewood, Arvada, and Genesee, Colorado.