April 1, 2011

Rental Turnovers

It never fails to amaze me the condition that tenants leave properties after they have moved out, even after being given instructions on how they need to leave a property in order to get any security deposit back. I think it represents a larger issue in society and a general lack of respect for other people’s property. Here at Landmark Group, our management department takes this seriously, we and are very aggressive in assessing damages and holding these tenants responsible.

After having done over a thousand move out condition reports and turnover assessments, I would say less than 5% leave it in a condition that allows for them to get their security deposit returned. In fact a greater majority end up owing our landlords for all the damages and trash they leave behind. Turn over cost and vacancy loss are the two greatest expenses a landlord faces , and it is just the nature of the game that you have to face them both at the same time while being aggressive on the turnover so you don’t just keep loosing rent .

One of the biggest mistakes a landlord makes is waiting to do a turnover for whatever the reason may be. Rent has 0 shelf life, let me explain:

Yes a landlord can save money and do some or all of the work on their own but while they are waiting to find time to do repairs on the evenings and weekends they still have to pay for the mortgage, taxes and utilities on the property, in addition to those expenses every day the house sits vacant they compound those expenses with vacancy loss. If you have a house that you could rent for $600 per month that equates to $20 per day in lost rents, and this is even worse for apartments imagine having this multiplied by 5or 10 units. This is real money that cannot be recaptured and is lost as long as you have vacancies.

The rental market is strong right now and in order for landlords to fill their vacancies they need to have it rent ready or the potential tenant will just go on to the next one. That is where my department comes in. Landmark Group's Maintenance and Construction division is ready and willing to all the things landlords don’t have time for or don’t want to mess with.

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