Wallet Wisdom

While there are many important things you should do when your renters vacate your investment property, these seven steps will keep the cash flowing.

By Tiffany Jones | April 20

Let’s face it, tenants move out. But the sooner you get new tenants into your rental property, the better. When my renters move out I am ready for new tenants by following this simple strategy that works like a charm.

1. Mark Your Calendar:

 Just like your mother’s birthday or your anniversary, you do not want to miss the end of your lease.

Set a reminder for 60-days before your lease ends. This is the time to ask your current tenants if they plan on staying or moving out. 

 If they are moving out, tell them your plan for marketing the property. Most leases allow you to place a “for rent” sign in the yard and start showing the property to prospective tenants 60 days before your lease ends. Agree on the times you will show the property and see if the tenant can leave during that time. Working with the current tenants will significantly help transition your investment property.  

2. Start Looking for New Tenants Immediately

You may have at your disposal one of the best forms of advertising, a happy customer. So offer incentives to your current renters like movie tickets, or gift a card for helping you find new renters. Sometimes tenants, like university students know people looking to move. What better way to find reliable renters than to ask the ones you already found!

Drive by traffic has always been a great advertising method to people who live and work in the area. Put a ‘for rent’ sign in the yard and make sure passers by can read your phone number from the street. Be prepared with your price, utilities included, bedrooms, etc. for when the calls come rolling in. 

The internet is another hot spot for prospective tenants. Creating a free ad online is simple. Just take a few pictures of the living area, front of the house, and the kitchen to give renters a good idea of the property. A great website for FREE professional looking ads is Postlets.com. Postlets is a Zillow company where you make one ad and they will “syndicate”, or feed, your description and pictures to a handful of big name real estates sites like Trulia, Hotpads, and of course, Zillow.

3. Transfer Utilities

 Call your utility company 30 days in advance to transfer of the utilities into your name on the date the tenants move out. This is such an important step because without utilities, like water and electricity, you cannot clean up after the last tenants. This will save you more than time because a transfer fee is less expensive to pay than the reconnection fees. Transfer fees can be $25 to $30 vs. $75 for a total reconnection. 

4. Walk the property

Walk the property and make a list of damages that you find after your tenant has moved out. Compare them to the move in inspection, if you’ve got it. Do not give the security deposit back until this is done! Check your lease agreement but usually you have 30 days to inspect the property and make repairs.

Save yourself 50 trips to Lowes or Home Depot by making a list of things that are damaged and need replacing. Take measurements of everything that may need it! Windows, doors, and walls that need attention like new blinds or curtains. Write down bigger fixes and call contractors you may need. 

5. Clean House

It may look like a bomb went off in the house so the next thing is to hIre someone to take the trash and abandoned furniture to the dump. Check your local laws & ordinances about the proper way to handle abandoned articles. Getting trash first out will make it easier for the cleaning crew to do a good job.

Usually the tenants don’t clean things like the fan blades, much less clean the floor. So unless you want to clean 12 months of gross from the toilet, hiring a professional will be your best bet. It will help get your property in showing condition quickly and if you didn’t do it this time, make sure your lease states that this will be deducted from the security deposit on the next go round.

6. Make Repairs

So your last tenant punched hole in the wall, it happens. Of course you will need to repair this before someone walks in and wants to live there. Repairs and Paint touch ups can be done simultaneously as the house is being cleaned.

7. Beautify

Nothing makes a house look, or smell better than a new coat of paint. A few smudges on the wall from the last tenant are ok and may even come off with some elbow grease. When choosing a paint color think about how well the color will wear over time and pick a conservative color like a warm buttery yellow, or a periwinkle blue to give the walls some personality without going overboard. 

 Just like a coat of paint will transform your investment property, a few simple decorations can really seal the deal with new renters. Try getting some inexpensive window treatments and put up a shower curtain if there is not one. These touches will give a polish to your rooms and make prospective renters feel like all they have to do is move in and enjoy. 

Turning over your rental property can be quick and easy if you are prepared. Try to line up new renters in advance, before the tenants move out because time is definitely money when it comes to your investment property. Schedule your utilities to be transferred and the cleaning crew to arrive the day after the tenants move. Make all the necessary repairs and replacements. Then sign a lease & sit back and let your investment work hard for you!

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 Tiffany Jones is a Real Estate Investor and President of Sycamore Property Management.

Follow Tiffany on Twitter @Investorista