How much time to get property "ready" between tenants

Question

Hello,

I recently leased my first rental property and need a better understanding of how to go from one tenant to the next in the shortest amount of time possible.  Is there a set number of days I should plan for between leases or is it on a case by case basis?

Also, when do I start listing and showing the property?

Brandon Ingegneri · Answer

depends on my tenants track record. If I know they take care of the unit and I can turn it around quickly, I'll have the old tenant move out by x time on the morning, have my whole crew of guys bang it out like animals, and allow new tenants to move in late in the afternoon that same day.

Or, you can give yourself 5-15 days. Make new lease effective on that particular day. That will give you a buffer to square things away. I understand not everyone has the manpower resources that I have to do a quick 1 day overhaul, so this will approach will account for that. A unit should be able to be turned around in 2 weeks if it needs a substantial amount of work. But... That is with a heavy construction background. That may not be the case for individuals who do not.

David Faulkner · Answer

I get the appeal of the quick turn and should absolutely strive for it IF your unit is renting at current market and is in good condition. I've had cases where it was under market rent and by investing some extra time off market and rehab dollars the return on that investment was incredible, so keep an open mind to that as well if that's the case. Depends on the local market ... I wouldn't do it in C class, but would all day long in class A if the market would support the ROI. I've also had cases where I didn't spend enough time and in my rush to turn it unknowingly missed some deficiencies that I had to send high priced handymen out multiple times while it was occupied to fix.

Marc Murchison · Answer

@Brandon Ingegneri thank you for the info.  I have the ability to show the property while occupied in the current lease so I am good there.  If I'm thinking correctly I should have a lease signed and moved in date established for the new tenants before the current tenant's lease ends.  So do you do an inspection a month or two before the move out date of the current tenants?

Brandon Ingegneri · Answer

Definitely a good idea to build in the ability to show the property/unit while still occupied. A sfh may need a bit of time depending on a number of factors. With my apartments, I give myself 2 weeks for a worst case scenario. Normally, I can turn around in a few days. The first time a unit is empty, I go through it extensively so that when there is turnover, there is only a minimal amount to bring to market again.

Marc Murchison · Answer

@Robert Melcher Thanks for the info, I like the idea of a mid-lease inspection and the marketing preview. I will probably give myself a day or two more than I think I will need to get it ready until I do it a few times.

Leon D. · Answer

That depends in large part on what sort of property, location, time of year, etc. Is it a condo? Single family? Rowhouse? Duplex? No matter where, when, or what, each will require a good cleaning, and basic maintenance check. Hopefully there's no deferred maintenance, or any surprises: you or your PM were on top of their game in fixing things that broke, and the tenant was honest about anything that did break.

But whether or not you need to make the place "pretty" for a new tenant depends to a great degree on the tenant. Maybe a wall needs painting, or something needs updating (fashion changes, after all). Who knows? Barring a major problem, figure 2-3 days to turn the average place around if no problems, a week tops if you're super busy.

Obviously, you shouldn't start listing or showing if anything big needs to get done, but once the grass is mowed, snow shoveled, lightbulbs replaced, carpet vacuumed, I'd think you could certainly show it. You could even (potentially) show it with the existing tenant in place, if you give the tenant sufficient notice (check local laws) and you trust the place isn't a pig-sty.

Good luck.

Robert Melcher · Answer

Marc,  Our lease states we cans show the property during the notice interval, and access by the landlord is authorized for showings and inspections.

The first step is to visit the property to "preview" it for the marketing, and you can note any big issues that may delay occupancy, and even stress to the residents what they could be docked for.

I always tell the residents to protect their valuables because its hard to track other people's children during showings, and the more they cooperate and the faster the house leases, the less time they have to tolerate showings.

I've had perfect houses occupied the next day.

I've had disasters that need  six weeks to prepare.

With this effort and a mid-lease maintenance inspection, there are fewer surprises.