Most Orlando real estate investors understand the expense and inconvenience that comes with vacancy. When your property isn’t occupied, you’re not earning any rent. You’re also paying for maintenance, upgrades, cleaning, landscaping, and extra security.
Tenant turnovers are often even more expensive than a simple vacancy.
The true cost of tenant turnovers can be harrowing. However, you can keep the costs to a minimum if you have a plan in place, some great vendors in your network, and a commitment to working quickly to re-rent your property.
Everything is more expensive than it once was. But, a good property manager can help you minimize those costs. Here are some of the costs you can expect and some strategies for keeping those expenses down.
Speedy Re-Renting Reduces Vacancy Costs
The first major cost you’ll encounter during the turnover process is vacancy.
During the turnover period, you don’t have any rent coming in. That’s going to hurt your cash flow and it’s also going to be a bit of a drain on your long-term ROI. Your property’s profitability depends on consistent rental income.
Approach every turnover with a strict deadline. Establish how quickly you want to get that home re-rented and then work backwards from that target date. With the right vendors and resources, it might take you only a day or two to turn the property around and get it back on the market. Without a stated deadline, you can let the process drag on too long.
Work With Preferred Vendors for Turnover Maintenance and Repairs
During the turnover period, you’ll also incur the cost of making the property ready for the Orlando rental market.
You’ll have to take care of the general wear and tear items that are found in your property between tenants. These are things that you are financially responsible for; you cannot use the previous tenant’s security deposit to pay for them. You may have to paint, fix the floors, and move in new appliances.
Good vendor relationships will keep these costs down. You’ll need a team that can work quickly and professionally. Make sure you already have relationships in place with painters, landscapers, and vendors who can respond to every one of your turnover needs. When they work faster and more cost-effectively, your turnover costs drop.
Upgrades and Updates
To remain competitive in the Orlando rental market, your property has to be modern and inviting. This might require some updates and upgrades.
Increasing the rental value of your property will certainly reduce what you lose during the turnover work. Take this time to upgrade whatever you can in a way that’s cost-effective. New fixtures on sinks and vanities, for example, can go a long way. Instead of replacing the carpet, consider hard surface flooring.
You don’t want to spend money on a full renovation. But, when you can make the small improvements that will raise your rental value, those turnover costs can be seen as an investment rather than an expense.
As Orlando property managers, we prefer to avoid turnovers and renew lease agreements instead. But, tenants leave and we need to prepare the property for new renters in a way that doesn’t cost too much money for our owners.
We can help you during this phase of renting out your home. If you’d like us to take a look at your rental, please contact us at Park Avenue Property Management. We work in Lake Buena Vista, Orlando, Kissimmee, Celebration, Maitland, Altamonte Springs, West Palm Beach, Tampa Bay, and throughout central Florida.