The turnover process is one of the biggest expenses for landlords. If you did not know before, now you will.
Every property owner dislikes this. It’s been a couple of weeks since you rented out a property. You need to make repairs, find new tenants, screen applicants, as well as advertise.
It’s a pain to have a tenant leave. It’s inevitable, but here are some tips to reduce turnover costs.
Renter turnover: How to reduce the cost?
LED Lightbulbs
It may seem like a minor thing, but it can save you a lot of money. The LEDs save you electricity. So, when it comes time to pay the utility bills after a tenant leaves, you will already be saving money.
The LED bulbs last 25 to 50,000 hours. This means that you and your handyman will have less lightbulbs to change. You can avoid headaches and save money by taking this simple step.
The tenant will also usually replace an old light bulb when it burns out. In the past I have seen situations in which a tenant would not replace the glass over the fixture, or even remove the ceiling fan from the ceiling to try and put in a new light bulb. Some tenants may break things by using bulbs that last longer.
Master Key System
Every apartment complex that I purchase, I install a master key system. Install a master-key system. You will only need one key and won’t appear like you are a janitor with an enormous ring.
It is costly to install the system, but once it’s up and running, you will see how it changes everything. It’s cheaper to have my deadbolts rekeyed with the master key than to buy a lock at Lowe’s.
Bonus: If the tenant misplaces the key, he or she can call the property manager who will contact the locksmith. After that, they have to pick up their new key and pay there.
The One Kind of Paint
Buy paint pallets in 5-gallon buckets. By buying paint in bulk I can save money and know exactly what color goes where. I can save a lot of money and time by doing just a few touch-ups rather than painting an entire room.
Two-toned paints are preferred in certain markets or on higher-end properties. This may be what you prefer. Stick to your favorite brands and paint colors.
Just in case, I keep some extra paints in every unit.
No Carpet
There is no carpet in almost any of my apartment. Carpet is the biggest waste of money, and is also one of the most important things that I’ve found to replace.
Instead I prefer luxury vinyl tiles (LVT), ceramic tile or snap-together flooring. They will last for many years and save you hundreds of thousands. They are also easy to maintain and clean.
Cleaning Crew
This one may not appear to be a cost-saving measure, but it pays dividends. Each apartment complex is cleaned by the same team.
They are so efficient in their work that I don’t need to supervise them. When they arrive, there is a checklist and a method to follow. They are aware of what I want and how to prepare the apartment for the next tenant.
My crews reduce turnover times and labor costs by doing the same thing over and over.
Mini Blinds
I have a particular pet peeve about this one. It’s a real irritant when tenants try to install their curtains themselves or hang a blanket on windows. They move out and then there’s always some drywall to repair. Sometimes, a few windows need to be replaced. Plus, blankets draped over the window don’t say “quality living”.
It is for this reason that I use mini blinds to cover all windows. The mini blinds are a neat look and tenants don’t need to worry about the brackets of the curtains (which never stay level) The tenant doesn’t have to worry about screwing up the curtain brackets (they are never level!) or nailing an (floral!) This can be done by nailing a (floral!) This small gesture not only makes the house look better from the inside, but it also allows the tenant to rent out the home faster.
Last Thoughts
Reduce turnover and costs is the goal. Do what you can in order to reach it. These are just a few of my favorite “out-of-the box” strategies.
Spending money today and doing the right thing will help you save money in the future.