Let's face it, tenants come and tenants go. With most leases locking tenants in for only 12 months, you can see a lot of turnover within a couple of years. Although you do your best to screen quality renters and keep them happy, a tenant is likely not to stay at a property forever. Tenant turnover is the highest expense landlords face. Vacant properties on average cost a landlord anywhere between $3,000 to 11,000! The good news is you can PREP for tenant turnover by following just 7 steps.

STEP 1 (Day One): You get notice from your current tenant stating they are planning on moving the following month. A simple phone call confirmation is not enough, send a letter confirming your conversation to the tenant, detailing the move out date and upcoming plans for inspections, deposit, and returning of keys. 

STEP 2 (3 Weeks Until Tenant Moves): A critical step in earning back revenue, have the property inspected. Most leases accept normal wear and tear; however, you want to also look for costly items that you are going to have to fix. Anything above normal wear and tear can be taken out of the security deposit paid by the renter. Along with the security deposit refund, make sure to send a letter to the tenant within a month after they move out stating what deductions were taken. This is also the time to ensure the property is safe and determine any need for upgrades. 

STEP 3 (2 Weeks Until Tenant Moves): Schedule estimates for home improvements, lawn prepping, cleaning, clean outs, painting, and pressure washing for the day after your tenant moves. Luckily, you know of a company that will complete all of these services at once!

STEP 4 (Moving Day): The day has come, your tenant is moving. Make sure to retrieve all keys and provide them to your prep crew. You should also start advertising your property for showings. Depending on the condition of the property, a new tenant can takeover in as little as 15-30 days.

STEP 5 (Day After Tenant Has Moved): Start the prepping process! Painting, floor cleanings, clean outs, cleaning, any maintenance or upgrades should be started and completed within 2 weeks of the tenant moving depending on the condition of the property. Steps 2 and 3 will help you determine the duration of the prepping process. 

STEP 6 (2-4 Weeks After Tenant Has Moved): Prepping is completed, you are now showing the property to potential tenants and conducting a thorough screening process; Make sure to complete credit and employment checks, in addition to finding out a potential tenant's renting history. The best renters are those with stable employment and good credit.

STEP 7 (4 Weeks After Tenant Has Moved): By now you should have mailed out the previous tenant's security deposit with the deduction letter, in addition to securing a new tenant. Congratulations! Within 30-45 days you have successfully prepared for tenant turnover and have secured your property into earning money for you again. The most savvy landlords are those who are prepared.