Tenant Turnover and What to Expect
Your tenant has given the 30 notice that they intend to move out at the end of the month. Real Property Management Houston will describe the process and give you an idea of what you can expect.
Once notification is made to the Houston Property Management Company, the tenant will immediately receive “Move Out” instructions. The move out instructions are intended to help the tenant return the property in as good condition as possible. It includes information on approved vendors, carpet cleaners, maid service etc. It also includes a Return of Possession Form that the tenant must fill out, checking the boxes for garage remotes, mailbox keys and other items that we want returned. They will turn in this form to the property management company then they leave the home for the last time.
After receiving the 30 day notice, the landlord will need to decide if he wants to market the property during the move out period. This is a tricky decision, with several pros and cons on either side. This topic deserves its own Blog post. Until then, talk to your property manager to help you make an informed decision. According to the lease, the tenant has the right opt out of this marketing, by paying an additional one month rent payment.
Move Out Day
When move out day arrives, and the tenant turns in their Return of Possession form. The property has officially been surrendered. Real Property Management Houston will visit the property immediately to conduct an assessment. There are several questions that must be answered during this assessment.
- What work needs to be performed to get the property in marketable condition?
- Is there any tenant caused damage, beyond normal wear and tear, that will need to be repaired and paid for by the tenant security deposit?
- Is there any deferred maintenance that the landlord needs to address, to prevent deterioration of the property?
The landlord will receive a report within the next couple of days, with current photos of the property, and descriptions of any issues discovered, with recommendations on how best to correct any issues found.
If the property is surrendered in rent ready condition, with no maintenance needed. The rest of the process is simple, return tenants deposit, and market the property.
If issues are discovered that will cost the landlord money, the property manager will contact the landlord to discuss the issues, and come up with a game plan that will get the property back on the market as soon, and inexpensively as possible. If estimates are needed, Real Property Management Houston can provide competitive estimates from one of our preferred vendors. Anything from painting, flooring, appliances, even re-models can be addressed by RPM Houston technicians.
If the landlord chooses to do the work on their own, RPM Houston maintenance supervisors can help with advice, options, and opinions, just ask. In any case, the decisions the landlord makes regarding repairs or upgrades should be made from the standpoint of marketability, and cost efficiency. By cost efficiency, I mean getting the most bang for your buck. Sometimes it is more efficient to pay more up front and realize long term savings later. For example, You might choose to carpet a room where the cost is $1000, and the service life is 5 years, a savvy long term investor might opt to pay $2000 to install vinyl plank flooring instead, and get 30 years of service life.
Cost efficiency also means restoring cash flow as soon as possible. It might be costing you $50 per day in lost rent to have the property sit vacant. I have seen landlords wait an extra week for a second or third paint estimate, where the difference was only $100. The old saying “a dollar waiting on a dime” comes to mind.
As soon as the property is market ready, fresh photos will be taken and the property will be listed on the MLS. It will also syndicated to our many partner websites. Don’t be surprised to see your property listed on Trulia, Zillow, Homes.com and others. Our marketing strategy will give the property maximum exposure, with the goal of finding a qualified tenant as quickly as possible and restoring the cash flow.
Tenant Turnover is tough for any property investor – call Real Property Management Houston today and see how we can help you with your Houston Rental Home and keep good tenants in place!