How to turn over the unit before tenant is completely moved out?

Question

BP, I've got my first tenant moving out at the end of the month and I've already begun advertising the vacancy for August 1st. I've received in under 24 hours 3 inquiries and requests to view the property. I need advice on how to best manage these different requests and ensure that I can turn the unit as quickly as possible and have a tenant lined up. The property from my initial walkthrough is in very good condition and beyond cleaning and some minor paint & touch ups, it should be a simple make-ready process. That being said there could obviously be unforeseen repairs etc. or tenant could do a number of things on the way out.

I'm requiring an application fee and background check on all prospective tenants who are serious. Do I start that process now with those that are serious prior to viewing the property? Most everyone wants to walk the property etc. How can I ensure I have the quickest turnover time and have a tenant lined up to move in ASAP?

I also realize this is a good problem to have and maybe I should be asking for higher rents...Thanks!

Account Closed · Answer

I wouldn't do it this way.  You're just asking for trouble.  The current tenant may not be out in time, there will undoubtedly be some cleaning or repairs that have to be done, you'll have to figure out what is old or new damage regarding new tenant - really, don't be so greedy.  End one lease cleanly before starting the next one.  Or suffer the consequences.

Account Closed · Answer

I re-read my post above, and I apologize for sounding so harsh.  I wanted to add, that I learned that it's impossible to find good tenants when you show an occupied unit - unless you're showing some really upscale rental with showroom furniture in it, that's immaculately clean...

Applicants can't see past other people's junk or dirt.  And the good ones will worry about the unit being cleaned and painted, or trusting your promises that it will all be fantastic.  I also found that when applicants saw a unit that was a work in progress, they were higher-maintenance tenants, because they were always looking for problems.  They have the visual in their mind of a place that needs work, and that is the image they tend to keep - that they are living in a unit that needs work, so they will find work for you to do, in my experience.  They'll be looking for problems with whatever you did, whereas, if they'd seen the finished, cleaned and painted unit, they wouldn't even notice minor blemishes.

We finally just expected to lose a month's rent between tenants.  It wasn't always a full month, but we ended up with much better tenants that way.  Applicants who don't care about a place being a mess, are normally the desperate ones.  Applicants who can afford to be picky, will usually keep shopping.

For what it's worth.  Plus, the stress of trying to manage a move-out and move-in that may overlap, and deal with problems and vendors and schedules that may not work out - not worth it.

Peter Mckernan · Answer

@William Glass Yes, have the applicants should fill out the application prior to that end date, and also get those people into the property to view while the tenant is there if they are willing to let that happen.

Also, you can get everyone lined up to fix the property up as soon as the tenants move out, so see about performing the walkthrough right away and then you’ll be able to know off hand what needs to be fixed and what can be done in the small timeframe before getting new tenants into the property.

Thomas S. · Answer

Plan on having a minimum 4 hour gap between move out and move in allowing you time to thoroughly clean. Hire a cleaning company to do the work to insure efficiency. They can get in and begin cleaning even if the tenant leaving is not yet completely moved out. Make it very clear to the tenant leaving that they must be out or you will hold them responsible for any costs associated with a delay and deduct it from their deposit. You can also deduct the cost of the cleaning crew from their deposit if you wish.  Your priority is to please your new tenant not your old one.

Any additional minor repairs and touch ups will be completed once the new tenants are situated.

William Glass · Answer

Account Closed thanks for your follow up. All of that makes complete sense and I appreciate your perspective. I didn't mean for it to come across as I was worried about losing a day's rental just curious how some people do it as I've heard at my local REIA how some investors do that regularly.

The current tenant is actually moving out the end of this week so it works out perfectly actually in the end. She didn't have firm timelines until this weekend but will be handing over the keys Friday which gives me time to get everything ready to show.

Like I said this being my first time turning over a unit I want to ensure I do everything properly, but also efficiently. I appreciate your insights and will give an update of how everything turns out!

Account Closed · Answer

You just need to make sure this works wherever your property is.  This would not be legal in CA, for instance, where no non-refundable fees are allowed, etc.

Johann Jells · Answer

I've turned over units in good shape with no vacancies a lot, it just depends on everyone being cool. I've certainly gotten good tenants doing this too. What has baffled me is the lease start/stop issue. If the outgoing tenant has a new lease starting on the 1st and mine ends on the 31st, they can't move in on the day they clear out. I've avoided it being a real issue, much of the time one of the tenants is flexible on their move date, but I can see it possibly being bad. Is it normal to let the outgoing tenant move the 1st,  the day after their lease expires?

Shaun C. · Answer

I write into my lease that the tenant will pay a $250 cleaning fee upon exit, as well as having the carpets professionally cleaned. I tell the tenant at lease signing that I will not charge this fee as long as the unit is left in immaculate condition and carpets are cleaned. I have yet to have to clean a single time at turnover. If I have to clean, it's in the lease that they are paying it, so I don't have to worry about going to court over it. Win win.

Jay Dean · Answer

@William Glass

I like leaserunner.com which is the same price as what @Peter Mckernan is using.  I am guessing they all offer about the same service for the same price.

With leaserunner, my prospective tenant pays the $35 fee.

In some cases the mere mention of a background and credit check has scared off some people presumably because they had something to hide.

How to turn over the unit before tenant is completely moved out?

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