Once your tenant has moved out and you’ve taken possession of your home, what do you do next? Your work really starts when the tenant gives you a 30-day notice to vacate. Today, we’re sharing four tips for your rental property turnover process.
Evaluate your Rental Rate
Depending on how long your tenants have been living in the home, the rent you’re charging may not be at market rate. So, that 30-day period gives you time to research the market and figure out how much rent to ask when you’re advertising for new tenants. Once you settle on a price, start advertising right away. You want to continue generating revenue on your property, so the sooner you advertise, the sooner you can show the property and find a new tenant.
Schedule Necessary Work
Once you take possession of the property, make sure the work that needs to be done is scheduled. Do your move out inspection with your tenant so you’ll know what’s necessary to get the home rent-ready. You need to line up work orders and more importantly, get estimates.
Return the Security Deposit
In California, you have 21 days to get a dispossession letter out to the tenant’s forwarding address. If you don’t do it within 21 days, you must give the entire security deposit back to the tenant. This means you only have those 21 days to calculate a breakdown for what it will cost to repair any tenant damage. You must itemize what’s being taken out of the security deposit, and be prepared to provide proof. You cannot estimate what the work will cost. You must have a number from your vendors, and receipts to back that up. Often, the security deposit is enough to take care of the work. If it’s not, you’ll need to try and collect the remaining balance from the tenant. With the dispossession letter, you’ll need to return the amount that’s owed to the tenant or notify the tenant of the amount that is owed to you.
Make the Property Rent Ready
Advertise your property, and if you have prospective tenants who want to see it, make sure you’re available to show it, even while you’re making the property rent-ready. You’ll want to make sure all the work is completed before the new tenant moves in.