Reduce Holding Costs

[John Montgomery]

I recently had a tenant move out of a SF rental without notice.  I wanted to share some ideas and lessons-learned that may help fellow investors.  The order in which you follow these steps isn't necessarily as important as taking each into account.  

I first informed my realtor so she could begin advertising the property.  I contacted the water, gas, and electric companies to ensure services were placed back in my name.  I then visited the property to assess its condition.  I realized it needed some paint, minor repairs, and cleaning.  There were also numerous box-springs, mattresses, etc in the house.  I left a lock box on the door to accommodate all the individuals who would need access in the coming week(s).  With the list of repairs in mind I began calling my team to check schedules and availability.  I realized that there was a logical sequence to follow (i.e. paint before cleaning carpet), so I scheduled people accordingly.  Once I had the work sequence set I contacted my realtor again so she knew when to begin showing the property.  I also thought through any renovations I may have been considering.  I checked smoke detectors, replaced air filters, serviced the HVAC unit, & checked the plumbing, electrical outlets, appliances, and crawlspace.  At the same time, I reviewed my lease and decided whether or not to increase the rent.  I updated my analog and digital files on the property and prepared necessary correspondence for new tenants.  By adhering to a plan I was able to quickly get the property back on the market.  Since this particular property had a holding cost of $25 a day, it's easy to see why a quick turn was so critical.  Hope this helps.