6 Ways to Make Your Move-Out Process Run Smoothly
When a tenant decides they want to move out of your property, it sets into motion a series of steps that need to be completed in order for the process to run smoothly. No matter the reasoning behind the tenant wanting to move out, it is important to have these steps in place to ensure you can move them out and have a new person moving in as quickly as possible.
Vacancy is one of the main problems property managers face, however with the right plan in place for tenant turnover, you can limit your vacancy rates and increase the profitability of your business.
It is important to keep lines of communication open between you and your tenants for a number of reasons. One of these reasons is to gauge whether or not they wish to extend their lease in the future.
A few months from their lease running out, make sure to have a conversation with your tenants to see where they are at and if they wish to re-sign. This is because if they do tell you that they will not be re-signing, you have ample time available to get their unit filled with someone new.
You don't want to wait until a week or two before their lease is up to ask them since you will be stuck rushing to find a tenant, and if you do end up finding one, they may not be of the best quality.
To make communication as easy as possible, consider setting up a tenant portal where tenants can express their intentions with the click of a button. This makes it extremely easy for your tenants to let you know their intentions.
Utilize Tenant Referrals
If a tenant decides they don't want to move to a different property in your portfolio, you still have an opportunity to make some money off their leaving. You can refer them to another property manager and charge a fee to the property manager for doing so.
This not only helps out the bottom line a bit but also will help you build relationships with other property managers in your area, which could pay off down the road in the form of referrals coming your way.
Be Proactive About Your Move Out Duties
When a tenant moves out there are a variety of things you need to do before a new tenant moves in. This process can take some time and require some outside help, so it is important to get this process started as early as possible to ensure it does not hold you back down the line. You don't want to lose out on a potential tenant because your property is not ready for their arrival. The first thing you want to do is inspect your property to check for any and all issues that need to be resolved before a new tenant moves in. This includes things like necessary repairs, cleaning, maintenance work, painting etc.
Once you have done a full inspection of the property and have your list of things that need to be done, it is time to start organizing how you are going to go about getting those projects done. This is also the time to start contacting any vendors or outside help that you may need to get the place ready for the next tenant.
It is important to have a system in place like vendorpm.com that makes it quick and easy to send out RFQs and have quality vendors at your property in no time. Once all the work you identified in your initial inspection is complete, make sure to do a final walk-through of the property to make sure all the work was done to your standards and you didn't miss any issues in your initial inspection.
Standardize the Move-Out Process
Standardizing your move out process helps to turnover tenants much faster and makes the whole process easier for everyone. For example, depending on where you live, many times you need to get your tenant to sign an agreement stating they would like to move out. Instead of writing this agreement out every time someone decides to leave, consider creating a template that you can use for all your move-outs.
This is much easier as you can just send them over the template and have them fill it out rather than creating a new agreement every time someone decides it is time for them to move out.
Also, for things like key collection, remotes, or any other devices they may have that belong to the property, use a tracking system to ensure everything is accounted for. This makes it easier to check things off and stay on top of things and also makes life easier for the tenant as they can check the list and see everything they need to produce before they can move out.
Support Your Move - Out Process With Technology
Using technology to support the move out process is a great way to easily make moving out more efficient and limit mistakes. Having a tracking software or app tracking all the steps you need to take during the move out process will not only ensure you are moving quickly, but will also remind you of anything you have missed so you always know you have your bases covered.
You can create a list of tasks that have to be done each time someone moves out and the estimated time to complete them. Then, once someone moves out, you can put the list to action and start working to get a new tenant into the unit quickly.
Track Your KPI’s
There are a few metrics that can give you a lot of insight into how your business is operating as a whole. These are important to track as they help you figure out the weak points of the business so that you can begin to work on fixing them. When it comes to the move out process, a few KPI’s that you want to pay attention to include:
Turnover rate - This is the rate at which your tenants move out. If your turnover rate is too high, you may want to consider talking to your current tenants to see what the main issues they have with your property are so you can quickly fix them and keep turnover to a minimum.
Terminated Lease Reason - When a tenant decides it is time to move out, try to get a reason for their decision from them. Although their reason may not always be in your control, if you see a pattern developing then you can take steps to fix that problem to ensure it doesn't cause any more tenant turnover in the future.
Ready to Market - This is a term used to describe a property that is ready to be filled by a tenant. This metric is important since you can compare the date a property was ready for market to the date the last tenant at that property moved out, to figure out how long it is taking to get your properties through the move out process. If this number is too high, consider using some of the tips above to help increase the efficiency of your move out process.