Avg cost to make unit rent ready?

Question

Hi All,

I am curious as to the average cost you guys will spend to make a unit rent ready, assuming normal wear and tear? I am nearing my first tenants lease, and have been speaking to my property management about the costs, and they mentioned it averages around $900 to make a unit rent ready (for a 3 bd 1300 sq ft SFH). I know that costs will differ depending on size of home, quality of materials in the house, etc, but I am happy to hear more about your experiences.

Any tips to decrease on this cost, especially when using a property manager? Do you ever charge the tenant a non-refundable professional cleaning fee, as I'm assuming cleaning takes up a bulk of the turnover costs.

Thanks!

Dawn Brenengen · Answer

@Kenton C. That sounds about right.  Of course, there are WAY too may variables to call anything average, but I can easily spend that much on a unit left in good condition

$150 - carpet clean

$200 - cleaning

$100 - yard clean up

$400 - paint touch up

$150 - misc repairs - HVAC filters, batteries, door stops, etc.

This is already $1000, so you see how you can easily reach $900 during a turn over.  That's why low turn over is so important.

Marrio Barnes · Answer

To minimize the cost of an unit turn, do a pre-moveout inspection of the unit. Take notes on what needs to be replaced, cleaned, and updated. Then inform the tenant on what they need to do to get their security back.

Then buy supplies, make arrangements for your repairmen to start repairs as soon as their gone, and get your craigslist ad ready to post.  Vancancy time is the most costly expense you will pay. Good luck.

Daren H. · Answer

High tenant quality (attracted by high quality rental) is a very important factor, at least for me. I have one particular rental I have turned approx 4 times in 7 years. I bet I have spent less than $900 total on all 4 turns. Tenants have to leave the place just like they received it (in great condition). Each time the tenant has left the place move-in ready for the next. During the lease period we fix things when they break and we inspect the property to make sure people are maintaining it well. Great tenant screening, selection, and management significantly drive down make ready costs. Unfortunate for me, 3 of the 4 tenants only stayed ~2 years before purchasing their own home.

Account Closed · Answer

I concur with @George P. on his point about letting tenants do anything.  You'll likely just have to redo whatever they attempt to clean, and they'll argue that they did a great job even if they didn't.  You never want your tenants to make repairs.

Specifically regarding your question:  Most landlords say that it cost between $1k to 2k to turn a property on average (that may or may not include vacancy cost).  As you've already alluded to, the condition of the property will have a big impact on cost.  Also, the cost will depend on the "grade" of rental unit you own.  Are the appliances, fixtures, carpets, etc. "contractor grade" or are they "custom grade" or somewhere in between?

If there is a lot of damage, take pictures with a  time date stamp before making the repairs and get some professional quotes on the cost to repair.  If you have to repair damage that is beyond normal wear and tear, you can charge for your own labor costs in Michigan--but you'll need estimates for labor to back up your claim.  And, if the repair involves work that requires a licensed person, you won't be able to claim the labor if you do the work yourself. (In reality, you probably shouldn't do this type of work yourself as municipal inspectors might make you have the work redone if they determine that it was not done by a licensed person).  And, don't forget to send your notice of damages to your tenants as soon as possible and sue them within 45 days of their move-out date if they dispute it.  You'll find more on how to handle the security deposit and the timing here.

Good luck!

Michael Boyer · Answer

Lots of variables on the costs and time first off by unit and circumstances...

For example, there any major items you need done like a hot water heater, new flooring, or appliances. This may be the case after a very long term rental for example.

How hard the tenant was on the unit matters, too. Some are delicate others not so much.

On the averages, I suspect you are getting an ok deal for a good turn around. Remember there is some cleaning even if the tenant does it well. Like the carpets (which I am not a fan of but are still popular in some areas). No carpet can save money as you can damp dust a vinyl laminate.

Then I like to tsp the walls and rinse and see if I need a total paint job or just touch. The labor on on a repaint could easily creep up to the amount you are talking about or eclipse it. But you could just touch up for huge money savings. Always use one color, all the time, every time to make it easy.

You may need a toilet or at least rebuild kit. The kit is twenty bucks and overhaul the inside so it may save a bit of money of you have an experienced person putting it on.

You want to clean the drains if they run slow, oil, tighten, and shine a hundred items (so they don't break later)...this may cost a few bucks but having the doorstops in place, the drains free, the sliding  door working smooth and windows working smooth saves you from call backs and break downs..

So scrimping too much on the turn around could be false economy as it could be expensive later. I would welcome the chance to do the maintenance when you get the tenants out. I have made lists of dozens, even hundreds of tasks, in a turn arounds. So I would pay someone that amount to do it, but it would be more than that in my are if I could even find someone to do it all.

On charging tenants for anything except legally defined damages (not wear and tear), that can also be penny wise pound foolish as a legal fees and damages in a small claims could eclipse any savings.

It is a good question, and you want to be efficient, but I would focus in keeping the tenant longer term (for fewer turnovers) to save money as that turn around fee, if it encompasses everything, may be reasonable. Best of luck.

Mike Wood · Answer

@Kenton C. My numbers will not be the same as your, as I personally turn my units.  What I can tell you it normally costs me about $150-200 in materials, and 6-8hrs of my time.

For the materials, this is cleaning supplies and painting/touch up supplies.  I use the same paint for my units, so I have ready stock of all paints, but still have to buy some supplies like rollers, pan liners, etc.  I patch any holes in the walls (nail holes, etc) and then paint any areas that were patch or scuffed.  I dont do a total repaint every time I turn over a unit, I only do a full repaint under extreme conditions (last on was due to pet urine smells in the house).

It usually take me 2-3hrs to clean the place.  I do this regardless of how "clean" the past tenants leave the place.  Nobody wants to move in to an apartment that is not clean, so I dont risk it.

Obviously if you have carpet, you will have to shampoo it, or replace it after tenants.  That could add more time or money.

Given that you are letting your PM do everything, I would guess that you would be looking at $500-900 per turnover.  Hope this helps.

Michael Henry · Answer

Unless you have cheap labor it will be more than $900.00. It will probably cost that much to paint the unit.

Anthony Torri · Answer

The main variables for any turn will be your market (labor and materials cost more in some places compared to others), how long was that tenant in place, did they damage anything, and how high a level of finish do you want in your unit.

My properties are in a lower cost area of CT. I turned 4 units back to back last year and it cost me on average $7500. These units had tenants in place from when I purchased the homes and the previous landlords never updated the units. I refinished hardwood floors, added washer/dryer hook ups, I supply washer and dryer for my units, replaced cabinets/counter tops, new toilets, bathroom vanity, and add a dishwasher.

I try to do the less specialized work my self to save costs, such as replacing the toilet and appliances, remove any junk, and clean. I hire a local handyman for small things like patching holes and help paint. I hire referred contractors for more skilled work such as electrical upgrades/repairs, refinishing hardwood floors, installing floors, etc.

If you want to know how much you should be spending on new finishes like counter tops, cabinets, and flooring, look at your competition. Compare rental listing on Zillow in your area and see what they have. If they all have granite counter tops, then I would spend the extra money and get that. You want to attract the best tenant.

Good luck!

Instagram: @creative_property_solutionsllc

Zach Davis · Answer

It typically costs me around $250 to paint, clean, shampoo carpets, and do minor repairs, that's usually after a tenant has been there 2-3 years. I've had some that cost me nothing at all, and others have been a full rehab that cost 5-6k. Completely depends on the tenants and property. You'll be double that if you're paying for labor.

Avg cost to make unit rent ready?

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