There are a number of frustrations landlords face when tenants move out. Some landlords have false hope that the rental deposit will be enough to cover upgrade costs and cleaning needs. Rarely do the tenant deposit provide enough money to pay for everything needed to get a property ready for a new tenant. Keyrenter Property Management McAllen, TX, has learned several things over the years about move out costs, and how you can reduce them while finding new tenants in a timely manner. Here are some things to do in order to prepare yourself for tenant move-out costs:
*Always set aside 10-15% of your gross rental income to go towards repair and maintenance costs.
*Inspect the property often to prepare for things like roof replacement in the future.
*Have money set aside to pay for new flooring every 5-7 years.
When a tenant vacates a property, landlords can be left with vacancy loss. Without money coming in, but money going out to upgrade and repair the property, it won’t be long before landlords are struggling financially. Working with a property management company is one of the best ways to reduce the risk of tenant turnover and to help find new tenants in a timely manner.
Tenant turnover does occur, and it is hard to cope with if you are losing a long-term tenant. However, different situations occur and you never know what might happen. The three most common reasons people vacate a premise include:
If a tenant is breaking the lease, you need to negotiate what you can. Some landlords will require a tenant to find a new tenant to take over their lease. Landlords do need to act quickly and list the unit for rent. However, you will want to do a property inspection to see what type of repairs and upgrades you need to do before a new tenant can move in.
While the hope is a tenant will move out when their lease is up and you will not occur a lot of move out costs, there are some bad situations that can occur. Here are some of the move out costs that some landlords do not prepare themselves for:
Stolen appliances and other property- There have been cases when a person takes the appliances with them when they move out. Set a pre-move out inspection to check around the property before they move out so you can remind the tenant what needs to stay in the unit.
Property damage- When a tenant packs up and moves out and there is no way to get a hold of them, you run the risk of having a disaster unit to walk into. Some tenants will leave before the rent is paid, and they leave behind a lot of damage.
Having an effective tenant screening process is the best way to find tenants that will care for the property. However, there are always going to be a few bad tenants that will slip through the cracks. Disasters can happen at any time and there will be moments when a good tenant suddenly becomes a bad one and they stop paying rent on time, and you find yourself discussing eviction.
Vacancy loss is something that is inevitable from time to time. Protect yourself as a landlord and establish a rainy day fund. Contact Keyrenter if you need assistance in managing your prop