What is a Turnover Estimate?

The Timeline for Your Property’s Return to Profit

The turnover estimate is a roadmap for returning a property to move-in-ready status. A good turnover estimate outlines the time and effort it will take to repair, clean, and relist a property before it can be rented again.

When a tenant leaves and the move-out inspection has been completed, the newly vacated property will require work to address any issues. This period can be difficult for investors as they balance input from contractors and vendors, manage the financial burden of a vacant property, and attempt to place a new resident in a timely fashion.

Parc Management uses this period to improve the investor experience. We solicit bids, schedule contractors, monitor for changes in regulations or compliance laws, and strategize to maximize the unit’s profitability.

What Obviously Needs Work

The first step of a turnover estimate is to assess the property’s most obvious issues. These issues may be related to tenant misuse or unavoidable wear and tear, and each must be resolved before a property is rented again. Examples of such issues include damaged drywall, plumbing problems, electrical faults, and smoke alarm malfunctions. The complete list is extensive, and the State of Michigan mandates compliance inspections to check anything that would prevent placement of a new tenant. Even if the unit is visually inspected, some housing authorities require more thorough testing before a property is listed.

Parc Management may assign an expert from our team to assess the property, or schedule reliable local contractors to examine speciality items. This allows owners to see what areas of their unit require repairs from normal wear, and what needs work due to the last tenant. The turnover estimate can also identify potential problems, helping investors determine the time needed for current repairs, and allowing them to plan for their unit’s future.

Not everything that goes into a turnover estimate is easily noticed. Our move-out inspection post explains what qualifies as “wear and tear,” the normal aging that occurs during each leasing period. Items like deep cleaning, painting, and replacement of appliances are often overlooked by investors when completing a turnover estimate. If these details are ignored they can reduce a unit’s value, and possibly lead to larger issues in the future.

Depending on the length of the previous lease, we advise owners to budget for a full paint job. Fresh paint can make a unit feel newer and earn more when it’s ready to rent again. Flooring is often overlooked when considering a turnover estimate, but even low-budget repairs like minor fixes or surface refinishing can improve a unit’s performance. In some homes deep cleaning may be beneficial, especially in cooking areas. Kitchen and household appliances may require upgrades for energy efficiency; we advise considering refurbished appliances from a reliable vendor. Contracting with local business owners can earn discounts on work, increase the earning potential of your property, and contribute to the health of the community as a whole.

What Value Improvements Can Create

The turnover estimate doesn’t only address what it takes to make a property operational; it also shows investors what can make their properties exceptional. Parc Management conducts market research on competitors and tenants to determine trends in the top-performing properties. We then advise the owner what improvements or renovations could be completed to raise their property’s value to earn a higher rent. Some improvements can even reduce vacancy periods, and attract more favorable residents for its next lease.

The best turnover estimates bundle repairs and renovations for the maximum value with the minimum vacancy time. For example, a kitchen with an immediate need for new flooring might also be nearly due for an appliance upgrade, or a broken bathroom sink might be replaced at the same time as an aging shower. Turnover estimates give investors options with clear expectations of the cost, timeframe, and effects their choices will have. Every turnover estimate helps landlords identify what their property needs. Parc Management pairs decades of experience with honest communication to help investors determine what they want for their property, and make a plan to achieve those goals.

Turnover estimates are part of the planning that makes a property succeed

Whether you've partnered with a management company or do it all yourself, the turnover estimate is an invaluable tool. This time can help you plan your property’s return to the market for an even more profitable lease, and an even more valuable asset. To see how Parc Management keeps projects on time and increases property earnings.

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