How much does it cost y’all for “turns” between tenants?

Atlanta, GA · Member since 2021 · 163 posts · 57 votes

Hi BP!

When a tenant moves out of your single family property (say 1500ish square feet) and you have to go fix the property to get it ready for the next tenant…. How much does this typically cost you? What type of repairs are you making?

This is assuming average wear and tear on the property

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Marcus Auerbach

Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes

We figure it costs us on average $5,000 when a tenant moves out. Our lowest rent is 1,500.

- 1,500: one month rent lost to vacancy

- 1,500: one month rent as cost of re-leasing

- 2,000 for improvements

Total $5,000 (it varies in reality, sometimes we can re-rent the following week, sometimes we spend more on improvements)

Once you understand the cost of a turnover, you start looking at things differently. For example what can I do to reduce turnover rate? Will a dishwasher help? Or dimmable LED lighting in living room and kitchen? What about a 2nd bath room?

We also finish basements in most of our properties, which costs a lot but does not bring much additional rent, but we have long winters in Milwaukee and that extra space adds significantly to the quality of life. Our average retention is over 6 years.

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Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
3y
Sometimes only 250.00 to clean the place up. if they leave it in good shape. Average maybe 2k. Once a tenant moved out on a dark and rainy night, the tenant's son broke back in wrecked the place, got drunk, fired off big fireworks in the duplex and broke holes in doors and walls. Made the evening news and got arrested. Cost me 25k but the place needed a remodel anyways. The insurance adjuster said it was mostly wear and tear plus some vandaism
1 Reply
Justin Winn
Real Estate Agent · Mountain View, CA · Member since 2016 · 70 posts · 59 votes
3y
I think this is a great question. Most people won’t consider this until it becomes a huge issue. I think this also depends on if you’re counting vacancy as part of your cost. But a professional cleaning and a few minor repairs should be all you need for around 2-300 bucks. Obviously that’s assuming they didn’t leave six months worth of garbage inside the house.
0 Reply
Account Closed
Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
3y
Quote from @Bjorn Ahlblad:

Sometimes only 250.00 to clean the place up. if they leave it in good shape. Average maybe 2k. Once a tenant moved out on a dark and rainy night, the tenant's son broke back in wrecked the place, got drunk, fired off big fireworks in the duplex and broke holes in doors and walls. Made the evening news and got arrested. Cost me 25k but the place needed a remodel anyways. The insurance adjuster said it was mostly wear and tear plus some vandaism
@Bjorn Ahlblad: What would be a good number be to use for costs per month for things like supplies, replacing missing items, soap, shampoo, paper towels, toilet paper, garbage bags, lawn care, pool care, etc, etc, etc. Not counting normal between tenant cleaning costs?

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Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
3y
@Account Closed You are a very savvy investor, Mike. I know you are not asking me that. And I have no clue as I am not in that business, I do LTR. So are you after something else?
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Account Closed
Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
3y
Quote from @Bjorn Ahlblad:

@Account Closed You are a very savvy investor, Mike. I know you are not asking me that. And I have no clue as I am not in that business, I do LTR. So are you after something else?
I guess I have you confused with someone else. (sheepish grin)

STR is on my mind and I misread your story about the tenant's son breaking back in and blowing the place up. 250 is about what the average STR charges for a clean up and I morphed that into a quick turn charge in my mind. ;-)

Now, I will go back to my goal of casually drifting through the weekend.
Happy Thanksgiving.
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Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
3y
We figure it costs us on average $5,000 when a tenant moves out. Our lowest rent is 1,500.
- 1,500: one month rent lost to vacancy
- 1,500: one month rent as cost of re-leasing
- 2,000 for improvements
Total $5,000 (it varies in reality, sometimes we can re-rent the following week, sometimes we spend more on improvements)
Once you understand the cost of a turnover, you start looking at things differently. For example what can I do to reduce turnover rate? Will a dishwasher help? Or dimmable LED lighting in living room and kitchen? What about a 2nd bath room?
We also finish basements in most of our properties, which costs a lot but does not bring much additional rent, but we have long winters in Milwaukee and that extra space adds significantly to the quality of life. Our average retention is over 6 years.
4 Reply
Steven Barr
OP
Atlanta, GA · Member since 2021 · 163 posts · 57 votes
3y
Quote from @Marcus Auerbach:

We figure it costs us on average $5,000 when a tenant moves out. Our lowest rent is 1,500.
- 1,500: one month rent lost to vacancy
- 1,500: one month rent as cost of re-leasing
- 2,000 for improvements
Total $5,000 (it varies in reality, sometimes we can re-rent the following week, sometimes we spend more on improvements)
Once you understand the cost of a turnover, you start looking at things differently. For example what can I do to reduce turnover rate? Will a dishwasher help? Or dimmable LED lighting in living room and kitchen? What about a 2nd bath room?
We also finish basements in most of our properties, which costs a lot but does not bring much additional rent, but we have long winters in Milwaukee and that extra space adds significantly to the quality of life. Our average retention is over 6 years.

@Marcus Auerbach this is very insightful.
For the $2,000 improvements, would you mind detailing what that typically consists of?

0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Steven Barr:

Hi BP!
When a tenant moves out of your single family property (say 1500ish square feet) and you have to go fix the property to get it ready for the next tenant…. How much does this typically cost you? What type of repairs are you making?
This is assuming average wear and tear on the property

6- 7k, 2500 all new paint, 2k flooring, miscl 2kish,
1 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Depends on how they left the unit, I usually paint and do some caulk work. Costs me anywhere from $500-$3000
1 Reply
Steven Barr
OP
Atlanta, GA · Member since 2021 · 163 posts · 57 votes
3y
Quote from @Bob S.:

Quote from @Steven Barr:

Hi BP!
When a tenant moves out of your single family property (say 1500ish square feet) and you have to go fix the property to get it ready for the next tenant…. How much does this typically cost you? What type of repairs are you making?
This is assuming average wear and tear on the property

6- 7k, 2500 all new paint, 2k flooring, miscl 2kish,

@Bob S. you replace all the flooring and repaint the entire house???

0 Reply
Steven Barr
OP
Atlanta, GA · Member since 2021 · 163 posts · 57 votes
3y
Quote from @Eliott Elias:

Depends on how they left the unit, I usually paint and do some caulk work. Costs me anywhere from $500-$3000

@Eliott Elias assuming you are just repainting areas that need it, and not the entire house, correct?

0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Steven Barr:

Quote from @Bob S.:

Quote from @Steven Barr:

Hi BP!
When a tenant moves out of your single family property (say 1500ish square feet) and you have to go fix the property to get it ready for the next tenant…. How much does this typically cost you? What type of repairs are you making?
This is assuming average wear and tear on the property

6- 7k, 2500 all new paint, 2k flooring, miscl 2kish,

@Bob S. you replace all the flooring and repaint the entire house???

If needs be, If the tenant has been there 4, 5 years then most cases the carpet for sure,
0 Reply
Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
3y
@Steven Barr
Anywhere from $895 leasing fee to $30,000+
The cost of a turnover is determined by two things:
1. The condition of the unit when you buy it
2. The treatment of the unit by the tenant.
If a tenant has lives there for 20+ years and there are no updates and they smoke, you can have to renovate every square inch + appliances + front and back hallways, you can get over 30k easy.
If the tenant trashes the place, same thing, you can spend 30k on a newly renovated place.
With labor cost and material cost sky rocketing turnover’s are becoming a major issue for our clients and are sucking up cash flow.
We are starting to do things like waive rent increases for good tenants, increase habitability by adding in suite washer and dryer, and whatever else we can do to get 3-5 year tenancy. It comes with a cost in rent increases but the added income of rent increases does not cover the high cost of turnover.
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Craig Janet
Member since 2019 · 223 posts · 261 votes
3y
I do all the repairs myself and I would say an average $1000 plus one or two months rents. This is why it always surprises me when everyone is quick to recommend getting rid of an PITA tenant that complains about minor things. Turnovers are very costly and time consuming they should be avoided whenever possible.
1 Reply
Daniel Patrick Glushko
Member since 2022 · 13 posts · 7 votes
3y
I assume $500 in paint (do it myself), deep cleaning (do it myself) and a week to rent again.
0 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
3y
@Steven Barr it all depends.
0 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y
It really depends on how long the tenant was there. I've had it cost cleaning supplies and 2 hours time up to $4000. For vacancy, I've had none up to 2 months' vacancy (PM messed up in that case). If you have a PM, the vacancy time and turnover costs will be higher as they hire everything out and aren't in as much of a rush to get it rented.
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Craig Janet:

I do all the repairs myself and I would say an average $1000 plus one or two months rents. This is why it always surprises me when everyone is quick to recommend getting rid of an PITA tenant that complains about minor things. Turnovers are very costly and time consuming they should be avoided whenever possible.

totally agree do what it takes to keep a decent tenant in place dont boot them over minor infractions thats a recipe for failure.
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3 Reply
Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
3y
Quote from @Steven Barr:

Quote from @Marcus Auerbach:

We figure it costs us on average $5,000 when a tenant moves out. Our lowest rent is 1,500.
- 1,500: one month rent lost to vacancy
- 1,500: one month rent as cost of re-leasing
- 2,000 for improvements
Total $5,000 (it varies in reality, sometimes we can re-rent the following week, sometimes we spend more on improvements)
Once you understand the cost of a turnover, you start looking at things differently. For example what can I do to reduce turnover rate? Will a dishwasher help? Or dimmable LED lighting in living room and kitchen? What about a 2nd bath room?
We also finish basements in most of our properties, which costs a lot but does not bring much additional rent, but we have long winters in Milwaukee and that extra space adds significantly to the quality of life. Our average retention is over 6 years.

@Marcus Auerbach this is very insightful.
For the $2,000 improvements, would you mind detailing what that typically consists of?

This is really just a rule of thumb. Sometimes we have to paint, replace a vanity, refinish floors, remove an old tree,... you never know.
1 Reply
Jane S.
Flipper/Rehabber · Colorado Springs, CO · Member since 2016 · 499 posts · 167 votes
3y
are any of you keeping the security deposit? I raised mine and rarely refund any my tenants are so awful I am getting out of this biz.
0 Reply
Curtis Mears
Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
3y
@Steven Barr
Tough to say, but average is less than $500, assuming I do most the work. Typical work like patching walls, touch up painting, cleaning, and other minor things. But the variance can be massive. My worst property was about $15k, broken doors, carpet destroyed, and other issues. But this is not the usual.
1 Reply
Cayden Standlee
Real Estate Agent · Milwaukee · Member since 2022 · 57 posts · 25 votes
3y
If you are talking average wear and tear, depending on how long the tenant has been in the property, but you can expect for a rehab cost of 2-4k for cosmetics like paint, resurface hardwood or flooring if needed, cleaning and you are good to go. We show the units as this process happens so that there is a tenant in the property asap.
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