When a tenant moves out of a rental property, there are always maintenance items to address. Currently, we are in the process of putting No Basement back in rent-ready condition. The steps we’re taking are pretty typical, so I thought I would provide a list of the steps that we take, along with some suggestions along to the way about how to save some time and money in tackling the task.
Typical Rental Property Repairs and Maintenance
While our properties have never suffered extensive damage by a tenant, there are always typical costs that we incur when a tenant moves out. Whether “typical” constitutes “ordinary wear and tear” under our lease, and therefore chargeable to the tenant, is for another day, but the following are items that we almost always encounter.
Painting. In most instances, when a tenant leaves, we’ll repaint. It doesn’t matter how long the tenant’s been there. Moving in, and especially moving out, mars walls. When we market a house, we want to present the best product. Painting gives the appearance of new and clean. Which leads to the next task. . . .
Cleaning. In nearly every case, a departing tenant’s idea of clean differs from an entering tenant’s. While it shouldn’t be a big (or expensive) project, cleaning should include cabinet interiors, appliances, interior window glass, door tracks, as well as the typical items. When hiring help, it’s a good idea to specify what’s expected.
Replaceable Items:
- Light Bulbs. There seems to be something with tenants having one foot out the door that causes them to decide that it just isn’t worth taking down that light fixture cover once more. When No Basement became vacant, there were about five working light bulbs in the entire house. Make sure these are on the list.
- Batteries. Smoke detectors, garage door openers. Check ‘em; replace ‘em.
- Filters. While this is a tenant’s responsibility under our lease, it’s often neglected and is probably the most significant thing you can do to extend the life of the HVAC system. Replace the furnace filter with a least a 3-month filter.
The Miscellaneous Repairs. The repairs differ; the typical part is that there will always be some–a half dozen little things that need to be fixed. I’m the one inspecting the property when a tenant moves to determine the condition and any charges against the prior tenant’s deposit. I’ll prepare a list at that time for the miscellaneous repairs.
A Few Time and Cost-Saving Suggestions
If “location” is the first rule of real estate investing, “standardization” is the first rule of property management. Standardizing a few tasks and lists are a great way to avoid reinventing the wheel.
Have standard ads. Prepare them once. Keep the electronic file. And they’re ready to launch.
Keep a list of the utility companies with phone numbers on hand to transfer the accounts when the tenant leaves. Most utility companies will also provide an option to set up a master account (sometimes called an “owner-agent” account) that will automatically continue service under the owner’s account when the tenant leaves. I still do a quick verification call to make sure there is no loss of service.
Use standard interior paint colors. I use one or two neutral colors for all rentals and keep the color formula on hand so I can just phone in the order or provide specific instructions to a contractor. Using a standard paint color may also help lower costs by reducing the amount of paint needed for coverage and allows an easy match for the occasions when the property requires only a partial re-paint.
Prepare standard instructions for contractors. There’s no question about it. I’m not a hands-on fixer-upper type. And Rob has a tough time figuring out which is the pound-end of the hammer. So, we hire the work out. Preparing standard lists of instructions for contractors helps to make sure the contractor completes the work that you expect the first time and bids the job accordingly. For painting, I prepare a complete list of items that I expect–e.g. ceilings, closet interiors, baseboards, garage walls–and then cross out any items not applicable for a given job. For cleaning, the list includes cabinet interiors, kitchen appliances, light fixtures, ceiling fans, interior windows and light bulb replacement. Finally, for the fix-it guy, I provide a list of inspection items, in addition to the list of repairs that I’ve seen. I may not catch everything in the inspection, and it’s much easier to take care of any repairs when the property is vacant rather than scheduling around a new tenant.
To standardize materials purchases, it helps to use a big box retailer. They’re more likely to be accessible to more of our properties so I can more easily order the same paint and other standard materials for all properties. Also, I can maintain a single commercial account to better track the costs. And some (Lowe’s<--free ad) will provide a contractor’s discount on materials. If you go to the contractor’s desk and tell ‘em Mike sent you (and even if you don’t), you should be able to get around 10% off.
Of course, if you tell ‘em Rob sent you, it’ll be 5% over retail.
Image Credit: angelltsang
{ 6 comments… read them below or add one }
Good point, standardization is truely the key.
I was reading “Property Management for Dummies” the other day and came across another standardization component to add to your list –a stardardized instruction letter to give to tenants before they move out. The one page letter lays out exactly how clean and in what condition you expect the house to be in, if they want their security deposit back.
Good tip, Terry. Have you used this type of letter? Have you found it helps?
We don’t repaint between tenants. We use a high quality semi-gloss on the walls, high gloss on the trim. We’ve found we can wipe down the walls and touch up between tenants–saves quite a bit (and still smells like new paint
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I *really* need to prepare some standard ads and a list of utility companies for each house like you mentioned. Looks like my To-Do list is growing–
Great article~!
Connie, Using more durable paints is a good suggestion (But you must also have some tenants that are a bit more careful than mine). Certainly a big cost savings if you can go that route. Thanks for the added thoughts.
Mike, I haven’t had any tenants move out since I read about the standardized letter in the “Dummies” book, but I plan to use it next time I recieve a 30-day notice that a tenant is moving. I’ll keep you posted.
Tons of good suggestions and ideas….Hey great site and information…Thanks for sharing and keep up the great articles…Thank You from Keith http://www.republicpm.com