Rehab Costs and Tenant Turnover

[James Galla]

I saw some numbers that I was not quite thrilled about, and I was wondering if anyone here would be willing to share what kind of numbers they are looking at in terms of rehab costs.

1. What was the purchase price? 

2. What is your average initial rehab cost when you purchase a property? 

3. What is the average rehab cost for tenant turnover?

[Account Closed]

@James Galla I am a property manager, and take precautions to protect my investors from spending that kind of money on a turnover. I managed 350 student rentals for 2 years, and every single year 85% of my inventory needed turning over. I collected cleaning fees at the beginning of the tenancy ($350-$500, non-refundable, one time fee, I just asked tenants to broom clean at move out and sent in a professional cleaning service at move out). I took a full month's rent as their security deposit, and charged any smoke damage, nail holes, drywall damage, etc.. to the tenants. I use keyless Schlage deadbolts on all of my properties so my investors don't need to pay an annual re-key fee. If a tenant does damage beyond their security deposit, often I work out a payment plan with them or pass them along to a collections agency to recover the amount owed. As long as you have the right property manager, you should be able to be quite profitable with annual turnovers.