How to handle apartment turnovers for scattered portfolios

Question

Hey all, I've just started my first semester as a grad student and i'm conducting research on a field of interest (property management).

I interned at an institutional size multifamily PMF a few summers ago, but a friend of mine started managing a few of their parents/family friends SFR rentals which has got me thinking more about what it looks like to be this type of property manager and handle 100+ units.

I would imagine the income generated is not as 'passive' as some people make it out to be, and I have a million questions about what the day-to-day of SFR property management looks like, but for my research i'm going to focus on one thing: turnovers.

More specifically, I would like to understand the to-do-list items surrounding the turnover process.

My guess is you must do the following for each turnover:

- Move out inspection
- Cleaning (if not done by resident)
- Handling security deposit (determining deductions and compiling proof)
- Cleaning carpets
- Painting/fixing holes/general GC maintenance and upkeep
- Installing lockboxes for self-showings
- Re-keying locks

Is my task list accurate? What are the most time consuming tasks? Driving to the properties to handle walkthroughs and lock boxes? Coordinating with vendors? Are there any tricks you are doing to make this process easier/quicker/more efficient?

Thanks for the help!!

Side Note + Transparency: I have talked to some mentors of mine who dabble in this type of real estate, and they suggested if Im truly interested in this as a career path I should get my feet wet in the field directly one way or another. While this research is technically for my grad program I'm trying to kill two birds with one stone; I'm considering starting a turnover side gig to help pay for school and i'm hoping to better understand what would make a GREAT all-in-one turnover service.

Bryce Jamison · Answer

Fun question!

Your turnover list is pretty accurate. I'd also add relisting the unit / finding new tenants. I like to list mine as soon as I know my current residents are moving out, but some folks may prefer to wait until the unit is empty so they can show it empty. Personally, I won't let perspective tenants do a self showing, but a lock box is good for vendors.

The most challenging part for me is the logistics. If I don't already have a trust worthy vendor, I have to schedule multiple onsite meetings for quotes, then you have to manage what day which vendor is on site. If anything slips, you're having to reschedule with everyone. I usually build in a few buffer days around each vendor, but everyday is lost rent. To help with quotes, I do a "vendor open house" where I'll have as many out as possible at the same time. It saves me trips and they tend to compete for the business more.

I've thought about leaving the corporate world and starting a management company, but I don't know how I'd scale enough to replace my income. It takes a lot of 2K a month rentals at 10% management fee to live off of. I suppose I could add part time employees to handle the monotonous tasks, but would I end up spending as much time managing them and dealing with employee turnover?