There exists a "true cost to vacancy" that every property manager must realize if they are to save the property owner great expense when it comes to total life investment in the property. Every property necessarily experiences a vacancy cycle between tenants; it is expected, but in order to reduce costs it is important to minimize the loss of rental income that can be realized with proper management. A quick turnaround time is possible when a property manager implements steps to reduce vacancy cycles. The most important steps are in the areas of utility accounts, maintenance, repairs and cleaning.

Utility Accounts

Property managers can reduce vacancy cycles when accounts are organized especially utility accounts from the previous tenant. Utility accounts that are not in good standing from a previous tenant can result in downtime for your painters, or carpet cleaners if the unit is without water or electricity because the transition period did not flow smoothly due to non-payment of final tenant bills. The reality is that when utility accounts do not transition smoothly from tenant to property management it can easily add days or even weeks to the vacancy cycle. The first step in reducing vacancy cycles has to be to have a firm control over utility accounts for each rental unit. One viable solution to this issue is to use property management software. The property management receives one utility bill at the end of the month and using a third party utility billing software or the property management software can then charge each tenant the appropriate proportion. This solution may also increase revenue to the property owner when managed properly without increasing the workload. Tenants enjoy not having separate utility bills and filling vacancies becomes easier as utility-free units are more attractive to tenants.

Maintenance
During the vacancy cycle the property manager must oversee common maintenance tasks such as cleaning carpets, washing walls and tiled or hardwood floors, and also painting. You won’t attract tenants to a dirty unit so it is imperative that these tasks be done in an efficient but cost effective manner. Pay particular attention to the cost of replacing carpet versus using a professional carpet cleaner to salvage carpet. The strong cleaning agents used by professionals can remove stains and dirt that may otherwise be impossible to irradiate by a non-professional. Professional cleaners can even successfully remove burn patches or persistent pet stains. Typically a professional carpet cleaning cost in the range of $200 - $400 as opposed to the average carpet replacement cost starting at around $2,500.

Units need to be painted during the vacancy cycle, especially when tenants smoke or when there have been families with kids. You can minimize the time and cost to paint a unit when you “touch up” smaller areas, and by avoiding doing the ceiling unless there were smokers in the unit. Avoid using flat white paint except for ceilings, as the white flat paint gets dirty easily. Use semi-gloss or another cleanable finish instead and you will be required to paint less surfaces, saving time and money.

Repairs
Repairs are always required before signing a new tenant. Normal wear and tear, and the consequences of everyday use can lead to broken items and fixing them prior to signing a new tenant is a necessity during the vacancy cycle. A typical repair list includes checking that doors open and close easily, that locks work and are secure, windows should open and close effortlessly, faucets should not leak and window screens should be in good shape without tears or holes. Make sure that windows follow any city safety ordinances, especially when renting to families. It is typically easier and cheaper to complete repairs when a unit is empty, than it is when you have to deal with issues that arise when the unit is occupied such as availability to enter the unit.

Cleaning
A wise property manager will realize that a clean unit is the top reason for the quick tenant turnaround. In most geographical areas there are plenty of available rentals, so usually the deciding factor for a tenant is not location, room count or size, it is how clean the living space is that a tenant looks for when deciding if they will sign the lease. Take the time and spend what is necessary in order to have a clean unit to present to prospective tenants. The money spent on professional cleaners will be worth it when you are able to have rental income sooner than later.

Conclusion
A property manager that follows these 4 steps to reduce vacancy cycles can expect to increase property revenues. It therefore is important to keep control over utility accounts in order to reduce downtime during the vacancy cycle but also to attract tenants. Performing efficient and effective maintenance and repair practices during vacancy cycles can reduce costs and guarantee that the units rent quickly. A clean unit will always result in a faster turnaround time because it will be more attractive to prospective tenants than a dirty unit.

If you are a rental property owner seeking advice on any issue related to managing your property, you can get in touch with experts here at REAL Star Property Management.

Our property management firm can be reached by phone at (254) 935-2392 or in person at our office locations, 1506 Paseo Del Plata, Ste. 200 in Temple, TX, and 3901 E. Stan Schlueter Lp., Ste. 100 in Killeen, TX.