Average Turnover Cost For 2 Unit Southside Chicago Section 8

[Gary Freidman]

Greetings BP community, 

I recently had my a move-out for section 8 2 unit (only one unit moved a 4 bedroom first floor unit with finished basement) on the southside of Chicago and wanted to see if the turn costs sounded reasonable. My PM, who I think uses an outside contractor to do turns. estimated it would cost $2K for just typical move-out work (the tenant seems to have left it in decent condition). This is before then normal lease up costs. I thought it might be a little high with total cost coming in around $3k I assume once lease-up is included. 

The estimate included:

Complete paint
Some Ceiling work to fix patch items
Minor Drywall repairs
Blinds
Locks replacement
Complete Clean top to bottom

[Mark Ainley]

@Gary Freidman Our average turnover cost for our southside portfolio was $1919.00 in 2018 and $2377.00 1st quarter of 2019.  That is about 30% higher then our average northwest and western Chicago suburb turnovers we completed for the same periods.  The thing that stands out for us on southside turnovers is almost every property needs a full repaint or even a heavy touchup.  Off top of my head I think we did only about 5 or 6 turnovers in 2018 where no paint was needed.  The "punchlists" of small misc items like doorstops, handles, bulbs, etc seems to be about 30% more items, and the cleaning cost about 10% more just cause the units are left a little more hard lived in.  Note we do not provide appliances in about 80% of our Southside units so our costs tend to not include the cleaning or replacement of appliances or appliance parts such as door handles.  

Reach out anytime if you want to talk more in depth.  The other thing that stinks about turnover on Southside is you have to make sure you clean it up nice and do all you can because your competition is always some other fresh rehab that is super new.