How to Ensure a Smooth Transition Between Tenants
Whether you manage one property or multiple properties, keeping units rented is the key to income. From single-family homes to vacation rentals to apartments, you want your reputation to be so good that people will come back to rent from you again. Tenants’ circumstances will change in many ways. Families have children, students go where the classes are, and vacationers go where the adventure is. Managing properties that appeal to a wide range of renters requires a great deal of work. Hiring a great property manager can be a lifesaver. In Durango, Colorado, The Property Manager will help you get your unit(s) rented and turned over as tenants’ needs change.
Before the Lease Ends
Whether you handle your own properties or hire a Property Manager, you will want to consider the following information. Before signing the lease, the move-in inspection, and the keys being handed over, provisions must be made for when the lease will end. When should a tenant give notice they are leaving? 30 to 90-days is typical and depends on how fast you can schedule the move-out inspection and other tasks. Think about the time between tenants. Leave enough time to manage all the repairs, updating, cleaning, or other projects you wish to complete but not so much that you lose income. Are you doing the work yourself or will you also need to juggle contractors’ schedules? Do you have wiggle room in case a problem is discovered like a faulty furnace or a leaking pipe? You will also need time to relist the property and screen potential new tenants.
At the End of Tenancy
Make sure to do a move-out inspection with outgoing tenants. Document everything, especially if the relationship with the tenants was less than ideal. Keep a date and time-stamped photographic record of each item on your move-in and post-rental checklists. Other items to cover during the move-out inspection include making sure all personal items have been removed. The property has been cleaned as specified in the lease agreement. All keys and duplicates have been returned. Utility accounts have been canceled by the tenant. Any damages are considered against the security deposit and agreed upon. Both parties sign off on the move-out inspection and the security deposit is returned within 30 days of departure.
The Space Between
Before re-renting, make sure the rent is still in line with similar properties in the same area. Make sure utilities change over so you have power and water for the in-between tasks. Handle any repairs and maintenance that needs to be done including replacing burned-out lightbulbs, checking smoke and CO2 detectors and changing batteries, patching any nail holes or other damage from the previous tenant, changing locks, verifying the appliances are in working order, replacing any air or water filters, and any other preventative maintenance. In higher vacancy areas, this would be a good time to make any updates to the property such as painting, cleaning, or replacing the carpet, tile, or linoleum, landscaping, fencing, updating appliances, or other renovations that could add value to the property. Also, make sure that the property is thoroughly cleaned and looking like new so it will be ready for the next tenant.
Other Considerations
If your tenant does not give you notice or moves out early, they are liable for rent up to the end of the lease agreement or the end of the notice period. However, that ends once the property is re-rented as it is not legal to collect rent from two different renters for the same unit at the same time. Consider adding an early termination fee to the lease agreement before the first tenant. If your tenant leaves without notice and before the end of the lease, you will need to weigh the benefits of going after them in small claims court against retaining the security deposit and quickly re-renting. If any property was left behind, consider the cost for removal, especially if the items are large or hazardous. Do your move-out inspection even if the tenants do not participate and be sure to document thoroughly.
There are a lot of things to consider when you first think about renting out a property. Considering these ahead of time can save headaches down the road. Hiring a great company like The Property Manager can take care of many of those headaches for you and help you turn your property into a great money-making investment. We strive to make the experience one that renters are happy to repeat.
