If you invest in rental properties, you are very familiar with the joys and frustrations of being a landlord. You may enjoy the passive income and entrepreneurial freedom, but you probably dread the process of tenant turnover.
Here’s what you need to know about tenant turnover to minimize your losses and speed the process along as quickly as possible.
What Is Tenant Turnover?
Tenant turnover refers to the period of time when a tenant moves out, and your rental property remains vacant. Bills and costs associated with the property must still be paid during this vacancy period, but you can’t collect rent from a tenant. As a result, all property costs come out of your own profit margins and reduce your overall revenue.
Due to the high costs of turnover, landlords take strategic measures to reduce vacancies and avoid them altogether.
The Costs of Tenant Turnover
Tenant turnover involves many costs. It’s not just the lack of rental income, but the costs associated with losing one tenant and preparing for a new one, such as:
- Marketing costs to find new tenants
- Time and money screening potential tenants
- Maintenance to the property during a vacancy
- Repairs to prepare the property for new tenants, such as painting, carpet replacement, and cleaning
Every time a tenant leaves, you must “reset” the property so it looks new and inviting to the next tenant. The costs of this “reset” add up quickly, especially without the rental income necessary to maintain the property in the meantime.
How Long Does Tenant Turnover Take?
The timeline for tenant turnover varies based on your location, market, property type, and other factors.
Turnover begins the moment a tenant vacates the property, and it doesn’t end until a new tenant signs a lease. Sometimes this only takes 24 hours, but in many cases, it can take 7-10 days or even longer.
Consider how long it will take to professionally clean the carpets, repaint the walls, deep clean the home, replace the air filters, manage landscape, and other important prep work. Make sure you are actively marketing the property and screening applicants while property preparation takes place, so there’s no additional delay in signing a new tenant.
Ask a Professional for Support
You don’t need to manage landlord responsibilities and headaches such as tenant turnover by yourself. Douglas Realty Property Management can help you navigate property management with ease and expertise. Call (239) 542-6906 today to learn more and get the professional support you need.