Chicago landords: how do you manage lease start / end dates?

Question

An overwhelming majority of Chicago leases start on the 1st of the month and expire at the end of the month, which can cause chaos when tenants move in and out.

How do you manage this? Do you count on vacancy between tenants? Do you hustle to turn a unit around in less than 24 hours?

Brie Schmidt · Answer

My leases always end at noon the last day of the month.  I charge $55 per patch and sand so I advise that they do it beforehand, they usually do.  I also charge a ton for cleaning so I highly recommend they hire a professional, they usually do.  They leave keys in the lockbox when they are out at noon.

Cleaners come at noon and use the keys in the lockox and are done by 3pm.  I already make note of what is needed during my final walkthrough so I show up at 3pm with blinds/toilet paper holder/ect - whatever they broke.  I spent 30-45 minutes changing that out.  All my buildings are the same paint color so I go from room to room with a roller covering any marks.  Take a paintbrush and do the same to the trim.  Usually done by 5pm

Erik Nerison · Answer

I generally have possession of the property terminate at or before noon for the outgoing tenant and begin around 4 or 5pm for the incoming tenant. In between, I schedule (in advance) the cleaning crew to come through and book a painter, if need be (this can usually be dealt with at a later date, if the new tenant is receptive to it).

Brie Schmidt · Answer

@Joey Nakayama - only twice have I not had back to back turnovers and both times were for a planned rehab.  I'll send you the cleaning addendum I add to the lease

Brian Ploszay · Answer

I generally shoot for long term tenants, so when I get a vacancy, the units need freshening up that certainly takes more than a day.  So I lose a month.

But I'd rather have a vacant unit because it usually shows better and I can attract a better tenant.  I've built this into the model.  With my low vacancy rate, I can afford to lose a month in between leases.

John Warren · Answer

@Joey Nakayama we recently put a clause in our lease that states that we can show the unit for 60 days before they move out. We recently had a turn over where we had the unit rented before the tenant vacated. As others have stated, we use the same paint colors throughout so that touch ups were very simple. The tenant left the place is fairly clean condition as we do a move in/move out checklist, and then we have a cleaner give the place a quick final clean while the painter is touching up.

Joe Mende · Answer

Hey Brie, would be so kind as to send me that addendum as well?

Joey Nakayama · Answer

Thanks for the responses everyone--very helpful to hear about your approaches.

@Brie Schmidt, you are a machine :) Do you build those move-out charges into your lease or through another agreement your tenants sign?

Marc Winter · Answer

We don't only sign leases on the first of the month--we can sign any day.  We collect a full month's rent up front, regardless of move-in date, and pro-rate the 2nd month for the days that they were not in possession.  Example:  rent is $1,000/mo, tenant signs on the 15th of April.  They will pay a full month, (plus deposit of course) and in May, they will pay only $500.00.  In June, it goes back to the regular rent of $1,000.00.

I can count on one hand the number of units we have rented over the years that have been ready the same day as a move-out.  So you must plan for repairs, cleaning etc., which is close to impossible to get done all at the same time in a few hours between tenants.  I'm sure it CAN be done, but we have very little success with that aspect.

@Erik Nerison , we have to pay a painter more if they have to work move and cover all a tenant's possessions to clear the way for painting--best to do it while the unit is vacant, IMHO.

Chicago landords: how do you manage lease start / end dates?

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