What is Rental Turnover?
Rental turnover represents one of the most challenging aspects of owning a rental property. It is characterized by a period of vacancy of the said rental property, which requires fees for the maintenance of the property until a prospective tenant takes the property.
While rental turnover is an experience that every rental owner experiences at least once, it can be especially challenging since there is a little inflow of cash to offset the landlord’s expenses, who must keep the rental property in good shape regardless of occupation.
Costs Associated with Rental Turnover
Many prospective landlords believe that the costs associated with the rental turnover end with light fixes and renovation costs. Unfortunately, nothing could be farther from the truth.
Here are some costs associated with rental turnover.
1. Marketing Costs:
This type of cost is pretty much self-explanatory. The more a rental property remains vacant, the more the owner of the said property works towards getting a sustainable tenant. The challenge here becomes “How to land a tenant.”
The answer, by incurring marketing costs. Marketing costs refer to the expenses incurred as a result of marketing the rental property in question to prospective tenants.
Some marketing costs may include costs for online ads and print media. While the platforms of the day have made online advertising more functional, it doesn’t take long for seemingly small expenses to add up to considerable amounts.
2. Administration Costs:
Most landlords fail to properly identify administrative costs since they can be easily misplaced under general expenses. These costs involve all paperwork with the moving tenants. It also consists of the time taken to search for and coordinate repairmen, cleaners, and even the process of screening prospective tenants.
3. Repair Costs/ Cleaning Costs:
Repair and cleaning costs are mostly incurred right after a tenant has moved out of the rental property. These costs depend primarily on the screening process. They may also depend on the clauses in signed agreements between the tenant and the landlord.
In agreements without clauses stating the line of action concerning damages to the rental property, there is mostly a higher tendency to spend a lot more on repairs after a tenant has moved out.
A landlord may also spend a fortune on repairs if the landlord fails to properly screen tenants before handing over keys to the property. Proper screening of tenants ensures reduced costs in repairs and cleaning, but it also mitigates rental turnover.
Pets/ Doggy Situation:
Another factor that may raise repair costs has to do with allowed pets in the rental property. Tenants who have dogs (depending on breed and training) may leave more expensive damages to the rental property, causing the cost of repairs to go up significantly.
This especially true with dog owners who fail to feed their dogs with proper dog food. This causes the dogs to fall ill, creating a mess on the property. You can find out the best dry dog food from best dry dog food reviews for dogs and make suggestions to struggling tenants to avoid scarred carpets and flooring.
Also, dog owners who keep organic items are notorious for damaging rental property. For instance, expired dry dog food can cause very difficult stains which can result in bigger repair costs.