9 Steps To Successfully Turning Over A Rental Property

In an ideal world, landlords would have amazing tenants that would stay for many years in a row and turnovers would happen rarely. However, in the real world, most landlords have to deal with rental unit turnovers all too often. When tenants deliver a non-renewal notice to you, meaning they will no longer be living in the rental when the lease expires, you can start to make plans to turn over the property.

In the process of transitioning a rental unit from one tenant to another, landlords have to worry about lots of details, from proper notice and inspections to security deposits and outside vendors. It can get pretty overwhelming quickly. Landlords who are better prepared for this process, and have set times and deadlines for when tasks must be accomplished, will find that turnovers are a lot less stressful and are actually done faster than when they don’t have a real plan.

Here are the 9 step process for turning over a rental property.

1. Receiving Notice

When the tenants let you know that they will not be renewing the lease agreement, make sure you have that in writing. You’ll need to confirm that they understand the time and date that they must turn keys back over to you and have all of their things removed. Keep the written notice in the tenant file, and keep the paper trail going by sending them a written reply that acknowledges you’ve gotten their notice and that you will be in touch soon to go over the move-out process.

2. Deliver Move-out Instructions

Many tenants are not sure of the order of events when they are planning to move out. The two most important things they need to be aware of is the move-out inspection and the occasional showings of the rental by new prospective tenants. Remind them that the move-out inspection must be done with you, and to coordinate a time and date that works for you. Generally, landlords like to do the move-out inspection approximately 2 weeks before the move date. They also need to be ready for you to show applicants the rental with 24 hours of written notice, so they won’t be surprised when you show up with strangers.

3. Scheduling

Many of the service vendors you use might be booked out a few weeks at a time so as long as you know the date and time of the tenant’s departure, you can call ahead and schedule painters, maintenance workers and others to pay a visit to the rental a day or so after it is vacated. This will shorten turnover time immensely because you won’t be waiting with an empty rental while you wait for your vendor’s calendar to clear up.

4. Start Advertising for New Applicants

Using your best marketing channels, create the ad for new tenants. Use all the tips and tricks for creating a compelling advertisement, and list your ad in all the best rental property publications, both traditional and online, that you can. Use a blend of networking and passing the info about your upcoming vacancy on to appropriate friends, family and co-workers.

5. Conduct the Move-out Inspection

Meet the tenant for the inspection and bring a copy of the move-in inspection papers so you both can compare and check for damages. Go through each room and evaluate each subcategory of the rooms. It may be hard to see some damages if they are obscured by furniture, so make sure you let tenants know that any new discoveries will be added to the inspection papers as an addendum. The move-out inspection papers should be signed and dated by both you and the tenant.

6. Find New Tenants

While your current tenant’s time is winding down, you must be taking phone calls, answering emails and otherwise tracking down your new tenants. Use efficient screening procedures to ensure that you narrow down the pool of applicants to the very best ones, and do background screenings and interviews with them. Over the course of a few weeks, you should be able to lock in some new tenants who will be able to move in on the date you say the rental will be ready, generally about a week after your current tenants vacate.

7. Get Keys and Do a Final Inspection

On the day your current tenants move out, meet them at the rental property to collect the keys and do a quick check to ensure there are no additional damages to walls, carpets, doors and more. Don’t forget to write down their forwarding address. Make a list of all the total damages and prepare their security deposit amount to be returned to them, minus the cost of damages. Check your state’s rules and regulations for returning security deposits.

8. Coordinate With Vendors to Get the Property Ready

You have a short window of time to get the rental property in top shape, so make sure your vendors are still able to meet their scheduled appointments. Painters, plumbers, electricians and more should all be ready to get to work in the empty unit and get it all fixed up for new tenants. This is also a good opportunity for you to make any additions, improvements or upgrades to the place, like putting in a new refrigerator.

9. Meet the New Tenants to Sign a Lease

Before handing the new tenants, always meet with them to sign a lease agreement, collect the security deposit and do a move-in inspection. Carefully go over the lease and discuss any areas they may have questions about. The move-in inspection is most effective when it is done before any belongings are put in place. Of course, the papers should be filled out completely and signed by both parties before turning over the keys.

With organization, foresight and a little bit of hustle, it’s possible for landlords to turn over a rental property within a week. The longer a rental sits vacant, the deeper the impact on the bank account, so do what you can to follow these 9 steps and keep your real estate investment full of paying tenants.