Tenant Turnover: Took Me 15 Days, How Long Does It Take You?

Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes

I just went through my first major tenant turnover on a 2000 sf house. It wasn't that bad, just cleaning and minor stuff and finding a new tenant. It took us 15 days total, and I documented the entire process here on my new blog.

https://www.biggerpockets.com/blogs/8843/51913-ten...

I was wondering what other people see for turnover time between tenants. Turnover is a huge expense, and I want to know your tips and tricks and best practices for making it a quick, streamline process. Thanks!

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Kurt K.

Rental Property Investor · Phoenix AZ / Kendallville, IN · Member since 2016 · 293 posts · 149 votes

10y

Right now its taking longer than anticipated. I inherited 14 units earlier this year from my father passing and I am rehabbing each unit as a tenant moves out which has been a challenge. That includes painting, all new flooring and appliances if needed. Raising the rent in each unit as well. Once the redos are complete, the turn around time will be much shorter.

When I first acquired the properties, I had 6 evictions from the get go and I'm replacing my 4th roof. So I have been on the fast track of a new property owner. So far its been an awesome experience and I think I have found my second career. I'm a slumlord turning landlord. As you can see I was challenged with some deferred maintenance.

Fortunately I have a property management company with an awesome property manager that has been handling the screening and so far we seem to be getting very good tenants. Time will tell.

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Kevin Hill
Investor · Bourbonnais, IL · Member since 2016 · 37 posts · 8 votes
10y
Julie, did you begin showing the house as soon as you found out the previous tenants were leaving? This has helped me fill units much faster.
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Julie MarquezPro Member
OP
Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
10y
@Account Closed Yes, they had a security deposit, around $700. My dad did all the inspections and money management, I'll have to ask him of the outcome. He has a detailed schedule of valves for everything as far as repairs and replacements, and it's in the rental agreement that they sign at the beginning.
@Kevin Hill We did start showing it right away, but it was a mess! Some people suggest only showing it as soon at it is ready. Now we have the tenants signed and in place for the 16th, but we still have a few little things to clean and finish. At what condition are they in when you start showing?
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
Depends on how nice they left the unit, your market demand, pricing, and the unit itself. I have been able to turn some over in less than a week. Others have taken almost a month.
1 Reply
Michael Currie
Investor · Halifax, Nova Scotia · Member since 2016 · 30 posts · 15 votes
10y
Hi Julie We start showing as soon as the tenant gives notice. It has been a challenge sometimes, I remember setting up showings at a house where the tenant was away for the weekend. Just her teenage kids were home. The first showing was embarrassing, but I managed to do a garbage bag / throw stuff in the cupboards (including dirty dishes) The next tenants took the place, but I made a deal with them to have our painter / handyman come in to do a bit of painting, after they moved in. It is not always ideal, some of the hustle between tenants, but I find if you communicate well, set expectations and do what you say you are going to do, you can avoid any loss in revenue. That being said, sometimes you have to shut a unit down between tenants to do a full on scrub down. To clean properly it really takes a lot of time. Mike
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Jennifer L.
Investor · San Jose, CA · Member since 2015 · 246 posts · 183 votes
10y
I had a 14 day turnover after a tenant vacated the property after 15 years. There was no way I could show it while he was in there - it was a mess. It took me a week to get it painted and fixed up. Once I listed it, I had a leased signed in four days. But because of the increase in rent, it only took me two months to break even on the vacancy.
This last time, I had lots of notice and I was able to show the place while the tenants were still in it. They had it decorated and arranged pretty nicely. It didn't help. It took the place being empty and clean to get it rented again. Fortunately, they bought a house and moved out before the end of their lease, so I had zero days vacancy between tenants this time. Still breaking even though, as I was unable to place a tenant at increased rent.
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Michele FischerPro Member
Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
10y
Julie,
I don't report mys tats this way, I look at unpaid days rather than empty days. We also track cost of turnover, but not time.
But looking at my info, I'd guess our turnover time varies from 5 days to two weeks.
We have two advantages, that our units are small square footage so easier to turn faster, and we have a more transient applicant pool so they can move in right away. We do have a disadvantage that with duplexes we do not start noisy work before 10am and don't continue past about 8pm, as to not disturb the neighboring unit.
It will get faster as you learn how to sequence things.
We generally wait to show it until the big things are done. If we are still a painting and laying floor it is a pain to traipse people through and stop the flow of work (with appointments and application verification). if there are small projects left those area great to work on while waiting for applicants to arrive.
Sometimes we have a few things that aren't done by move in. Usually because we are waiting for materials. In that case we list out what we are planning to do when, give them a copy, and get their signature on our copy once it is done to their satisfaction, and file that with the move in inspection. Most are so thrilled to be moving in that they will deal with the lack for awhile and the installation disruption cheerfully.
Podcast Guest on Show #79
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Brandt Smith
Cypress, TX · Member since 2016 · 132 posts · 49 votes
10y
@Julie Marquez you can list it immediately to minimize the time vacant. You don't have to start showing it immediately, but I would put it on the market. You can use previous pictures of the property and include in your description all the things you will be doing so that if they look through the window (they will) they won't run away. The key is to have several people on a waiting list, and you want tenants that need to give notice on their existing home, not tenants showing up in a moving truck saying "when can we move in."
2 Reply
Jennifer L.
Investor · San Jose, CA · Member since 2015 · 246 posts · 183 votes
10y
Does anybody think there can be a negative effect to having your listing up too long and too soon? I wonder since Zillow tracks how long your listing is available if that can deter tenants as your listing ages.
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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
10y
Longest period of vacancy that I can remember is two weeks, but I have small houses in a college town so they move pretty quick. My preference is to start showing as soon as possible, but it depends on the type of tenants, where they are in the moving process and how clean they are since there's little you can do with their stuff while they still occupy. Latest potential vacancy has been a piece of cake in showings because our tenant is clean, doesn't have too much furniture and did a good job of decorating. Tried showing one last year while tenant was still in and it wasn't a good idea because she had so much furniture the place looked really small.
Even if we aren't showing yet, I will start advertising as soon as we are 30 days or less from the tenant leaving. The ideal situation is a house with no damage where the previous tenant leaves a few days early so you have time to clean on the rented dime. Next ideal is a tenant willing to take possession on the 2nd or 3rd if the previous tenant stays all the way.
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Skyline Properties
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Julie MarquezPro Member
OP
Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
10y
@Account Closed Good call with the receipts. I let my dad (with his 35 years experience) handle all that stuff. What do you do about small stuff that you bought in bulk from HD Supply 10 years ago (like range drip pans, door stops, etc.)?
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Julie MarquezPro Member
OP
Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
10y
@Jennifer L. 14 days doesn't sound that bad for such a worn place. Glad you were able to recoup the vacancy with increased rent. We increased on this house $200 a month, so that helps too. And it's always nice when the old tenants cooperate with showings. I found that to be a more common practice when I lived in Seattle, but less common in this more rural area.
@Michele Fischer What's the difference between and unpaid day and an empty day? Those seem like the same to me. Yes, there is a lot to track at turnover, but unpaid days seems to be the most expensive part. Good call on when to show it depending on the work going on in the place. I'm glad you've have good success and it sounds like you've got yourself a good, seamless process.
@Brandt Smith I now have good pictures so I can advertise it immediately (I didn't have that before this vacancy). I like the waitlist idea!
@Jennifer L. I've also wondered that! When I see old deals on Zillow or Craigslist, I just think they are bad or overpriced, or something is wrong with it. So maybe it is good to clarify in the listing when you started advertising and when it is available. And Zillow tracks that information forever. Even when I had a tenant at day 9, I didn't take the ad down until after we signed (day 14).
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Julie MarquezPro Member
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Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
10y
@JD Martin Now that I have good pictures of this property, I can use it to advertise earlier. Do you have handymen and cleaners in place, ready to go as soon as the place is vacant? We were just really slow from our work pace, and could have had the place show ready in a couple days if we had the people ready to put to work.
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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
10y
Originally posted by @Julie Marquez:

@JD Martin Now that I have good pictures of this property, I can use it to advertise earlier. Do you have handymen and cleaners in place, ready to go as soon as the place is vacant? We were just really slow from our work pace, and could have had the place show ready in a couple days if we had the people ready to put to work.
Try to, but it doesn't always work out that way. Luckily, I can fix or replace pretty much anything on a house myself, so if I can't pull contract labor I always have that option. That is one area where economy of scale plays in your favor, and one advantage a larger organization has over me. We aren't big enough yet to keep that kind of personnel on staff, so I have to arrange as needed and vacancies don't always line up well.
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Vic French
Real Estate Investor · Petaluma, CA · Member since 2016 · 60 posts · 27 votes
10y
45 days average but I believe in collecting several applications before making a final decision. I do all due diligence and try to determine if applicants would be a good fit for the property and neighborhood. I am not greedy to fill the vacancy only to have major problems later. It has to look good on paper and feel right when I interview them. It has been my experience that the early lookie-lou's have problems or are desperate; I usually find my people 3-4 weeks into the process.
1 Reply
Kurt K.
Rental Property Investor · Phoenix AZ / Kendallville, IN · Member since 2016 · 293 posts · 149 votes
10y
Right now its taking longer than anticipated. I inherited 14 units earlier this year from my father passing and I am rehabbing each unit as a tenant moves out which has been a challenge. That includes painting, all new flooring and appliances if needed. Raising the rent in each unit as well. Once the redos are complete, the turn around time will be much shorter.
When I first acquired the properties, I had 6 evictions from the get go and I'm replacing my 4th roof. So I have been on the fast track of a new property owner. So far its been an awesome experience and I think I have found my second career. I'm a slumlord turning landlord. As you can see I was challenged with some deferred maintenance.
Fortunately I have a property management company with an awesome property manager that has been handling the screening and so far we seem to be getting very good tenants. Time will tell.
4 Reply
Michele FischerPro Member
Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
10y
Julie, I wish unpaid matched empty days! We have days where the tenant isn't paying or moving out and the deposit doesn't cover unpaid rent.
Podcast Guest on Show #79
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Amy A.
Portland, ME · Member since 2012 · 616 posts · 550 votes
10y
I have found that standardizing paint color and not allowing any smoking really speeds up turnover unless it's a total remodel. A quick coat of paint to cover scuffs really makes the place look better. If the tenants are clean and the apartment is in good condition, I like to show it while occupied because it shows better. However, if the apartment stinks or needs a remodel, I don't show it because I don't want to rent to the type of people who would live that way.
1 Reply
Kevin Hill
Investor · Bourbonnais, IL · Member since 2016 · 37 posts · 8 votes
10y
Julie, your assumption would be correct, I show units with tenants in the unit still when the units have been kept up by the current tenant. Generally, our bi annual inspection of the unit helps to keep the unit from getting to bad if the tenants are not caring for the unit properly.
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Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
10y
The fastest we have ever done was 24 hours but that is not common. 2-3 weeks from start to finish is probably about right.
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John Vietmeyer
Investor · Johns Island, SC · Member since 2014 · 120 posts · 41 votes
10y
risky, but I've been doing 24 hours. Check out at noon, check in at noon. I do a walk through a week before and talk to tenant about any repairs that may need to be done before they leave.
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Tyler Ansell
Investor · Tampa, FL · Member since 2015 · 293 posts · 175 votes
10y
Once tenant gives notice you could do an inspection. Spend some serious time in the unit thoroughly evaluating what you'll need to do. Build a good punch list of exact items and/or projects that need accomplished. I.e. "downstairs bathroom: 3 lightbulbs, touch up paint, toilet paper rack", "bedroom 2: new carpet measurement 12'x10' beige" etc.
That way, Day 1 when tenant moves out you can show up with all of your supplies and a task list for whoever is helping you and turn the unit extremely quickly. I just completed turning over 150+ units in a 14 day time period using this same process on a multifamily asset.
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Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
10y
From my experience never show a messy or dirty property. Any good tenant will walk away. Do you really want to rent to someone who likes a dirty house. My best turnover is 0 days. Worst took 2 weeks to be rent ready then another 3 weeks for move in. Usually my gap between paying tenants is 1-2 weeks. One question I have is what do you consider turn over? Time to get it rent ready or time between paying tenants?
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Julie MarquezPro Member
OP
Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
10y
@Joe Splitrock I think that's good advice never to show a dirty of messy place. But it's difficult when I want to get to shown right away or when I'm working at the house and want to have open houses while I'm already there.
I consider turnover the time between paying tenants. Can you do work to the property while the tenant is paying (paying = occupying)?
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Deanna McCormick
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
10y
I think several posts gave you a good points to consider.
1. Pre-inspect at vacate notice. to see if you can consider showing it to new tenants. Advertise as soon as possible, you can always set up a move in date after the 1st. but goal is a 24 hour turn.
2. Do a check list at pre-inspect to get your supply list started and give current tenant a heads-up on what you expect them to take care of before move out.
3. Exterior work can be done after interior so I would have postponed that, maybe even till after new resident was moved in. they don't live outside...you gain rented days..
4. So basically your cost was about $800.00 for lost revenue for the 1/2 month you were vacant. It's really your call as to how this makes your pocketbook feel.
As a property manager that worked for a large complex I had resources that I utilized to do the work on turns which were vendors and cleaners. but the most important resource I had was ME. I coordinated made arrangements for scheduling what was done first and If I ever got keys early like you did with permission to enter, I would have been in 5 minutes later or sent my staff in to get started. 10 to 15 apartments at the 1st of the month were what we were prepared to handle and some months we did only 4 or 5 but we kept the move in date of the 1st even if we had to finish painting a room around the new tenants.
First job was to REKEY.
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Julie MarquezPro Member
OP
Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
10y
@Kurt K. I'm really liking that idea. Then you have your list ready, can get all your materials, and turn around in minimal time! Wow, that's awesome efficient work on your part, great system!
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