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How to Transition Your San Francisco Rental Between Tenants
BanCal Property Management • October 29, 2021
Managing Efficient Turnovers
If you dread tenant turnovers, that’s understandable. They’re often expensive and time-consuming, and while you want to give every detail the attention it needs, you’re also working hard to get new tenants into place quickly.
An efficient transition between tenants requires great vendor relationships, strategic marketing plans, and the help of
San Francisco property managers who have done this effectively many times before.
We can help.
CHECK YOUR LEASE AGREEMENT FIRST
Check your lease for notice requirements and instructions for your departing residents who are hoping to get their security deposit back. Offer a pre-move out inspection to your tenants. It’s a good opportunity for you to get an idea of what you’ll need to do during the turnover.
1. BUDGET FOR TURNOVER COSTS
Turnovers are expensive because there’s always going to be a
period of vacancy. There’s no rent coming in, and that’s going to pause your cash flow and drain your
long-term ROI. You know your property’s profitability depends on consistent rental income.
There’s also the cost of utilities, security, and upkeep. When your tenants aren’t in place and there’s no one else to continue paying the electric bill, the water bill, and the gas and trash bills, you have to cover them yourself as a property owner. You cannot leave everything turned off because the vendors and contractors coming inside to paint, repair, and upgrade will need electricity. When prospective tenants come to see the home, they’ll want to turn on lights and sinks.
Prepare for these out-of-pocket costs during tenant transitions.
2. THIS IS A GOOD TIME FOR UPGRADES AND UPDATES
You’ll need to repair anything that’s broken, whether it’s due to general wear and tear or property damage that you’ll pay for with the security deposit.
Have your vendors and contractors ready to get to work as soon as the property is vacant. The faster you can get this work done, the more money you’ll save. Consider making cost-effective upgrades and updates during the turnover period. Without any tenants in place, it’s a great time to repaint the walls, install new flooring, and maybe replace those old and deteriorating appliances.
Even small improvements to lighting, fixtures, and cosmetics will be a big deal to prospective tenants who see your property. You’ll keep your rental home competitive in a shifting San Francisco rental market.
3. BEGIN RENTAL PROPERTY MARKETING AS SOON AS YOU CAN
You’re trying to keep turnover costs low and timelines brief. Start
marketing your property to prospective tenants as soon as it’s reasonable.
If you have a great program of online advertising and you’re responsive to every potential tenant who calls with questions or to schedule a showing, you’re likely going to have a shorter turnover period. If you wait a few days before listing the home for rent online and you’re slow to respond to inquiries, your turnover period will be a lot longer.
Rent-ready homes rent faster
Work quickly, but don’t be sloppy. You want to turn your property over to great tenants, and those good residents will be looking for a clean, functional home that’s attractive and welcoming. Don’t list it before it’s ready.
AVOID EXPENSIVE TURNOVERS WITH SAN FRANCISCO PROPERTY MANAGEMENT
Your tenant transition does not have to be stressful. When you’re moving one resident out and another in, work with experienced San Francisco property managers. At BanCal Property Management, we’ve been turning properties over for more than 30 years. We can make sure your property is in great shape, and ready for the rental market.
Owning multifamily property in San Francisco comes with a strong upside. It also comes with a long list of exposures that can erode that upside quickly if the wrong thing happens and the right coverage is not in place. Insurance is not the most exciting part of property ownership, but it is one of the most consequential. Getting it wrong does not show up until something goes wrong, and by then the cost of the gap is already set. Here is what a well-structured multifamily insurance program actually looks like and where San Francisco owners most commonly fall short.
This is a subtitle for your new pSecurity deposit disputes are one of the most common ways landlords end up in small claims court, and most of the time it is not because a landlord acted in bad faith. It is because the paperwork was not done correctly, the deadline was missed, or a fee was labeled the wrong way. In California, the rules are specific and the penalties for getting them wrong are automatic. Here is what every San Francisco property owner needs to know.
BanCal Properties has provided landlords with a guide of 8 tips for getting a property ready for rent.
BanCal Properties has provided landlords with a guide on how to keep renters happy.
