The True Cost of Tenant Turnover

The True Cost of Tenant Turnover

Preventing tenant turnover

When a tenant moves out, does it cost you anything? The answer is yes. If you have a revolving door of tenants, this could be costing you much more than you think. You may not think about these costs often, but if you have a high turnover rate, it’s time to reevaluate your property. Vacancy directly affects your cash flow, and it’s important to lower your vacancy rate. Tenant turnover should be quick and efficient in order to keep your cash flow where you want it.

Tenant Turnover Rate by the Numbers

We have compiled statistics for Utah rental properties helps us establish a baseline for what is considered typical within the local property management industry. Some of the most surprising statistics have to do with tenant turnover.

  • In Utah, it takes an average of 25 days to complete an eviction
  • 23% of people move in the six months from October through March.
  • 80% of renters that fall a month behind in rent and never catch back up.
  • 78% of Utah rental properties turnover each year.
  • The average cost of getting a unit rent-ready is $1,123.
  • The average cost of tenant turnover is $2,500 – $5,000.

With turnover being such a steep cost, you’re probably wondering where these charges are coming from. There’s a variety of places these costs from, so here’s a breakdown of what to expect with tenant turnover.

Cleaning

Once your renter moves out, it’s important to ensure the property is clean in order to attract new tenants. Depending on if your property has carpet, hardwood, or another type of flooring will affect these costs. For example, if you have carpet, you’ll need to pay for carpet cleaning. While your former tenant should have cleaned before they moved out, this is not always the case, unfortunately. If they have behind any mess, this is now your responsibility to clean. Depending on the severity, you may consider hiring a professional cleaning company. When you have a property management company, they already have established relationships with various types of cleaning companies and can ensure you get the best price. No matter what, this aspect of turnover cannot be overlooked.

Repairs

Repairs are part of property turnover

Unfortunately, not every aspect of your property will be in perfect condition once a tenant moves out. You want to make sure that everything is in working order and the place looks pristine to attract a new tenant. Repairs can be as small as simply filling in holes in the wall, or as large as new flooring. Major repairs can delay the time between tenants, so it’s important to stay on top of your maintenance before you have a vacancy.

Marketing & Showing

In order to help fill your property faster, you need to invest time and money into marketing the property. While there are some rental ads you can post for free, others do require a small fee. You also need to allow time and money for showing the property. A responsible renter will want to see the property before signing a lease, and you want responsible tenants. Coordinating a time to show your place and accounting for travel costs can make this a costly aspect of property turnover.

Application Processing

Once you’ve found a potential tenant, you need to do your due diligence and ensure you’re getting a quality renter. While you should be charging an application fee, you may not be ready to do that yet. With an application, you should be checking credit, criminal, and renting history. This ensures that you’ll receive rent on time, protect your other tenants, and reduce your eviction rate. While an application may seem unnecessary, it saves you money in the long run and ensures a responsible tenant.

Lost Income

When a tenant moves out, you want that vacancy filled as quickly as possible. However, there is no guarantee you’ll be able to fill your available rental that fast. So, in the meantime it’s important to prepare yourself for the loss of income you’ll have for an indefinite amount of time. This also gives more motivation to find a replacement tenant to ensure that you won’t be using any of your savings to cover a mortgage payment.

Preventing Property Turnover

Reducing tenant turnover rate

Did you know that 70% of turnover is avoidable? There are simple measures you can take to keep your tenants happy and keep your units full. While you can’t help if a tenant needs to move out of the city for a job or to be closer to family out of state, you can help ensure a tenant doesn’t leave your property for another one in town. With easy, low-cost tactics, you can keep tenants and prevent property turnover.

Maintain a Positive Relationship

Tenants are more likely to stay in one place if they feel heard and cared for. Establishing good communication is a great way to keep tenants. A part of this is responding to maintenance requests in a timely manner. If you can’t get to a request right away, it’s important to relay that to the tenant and keep them up to date on what’s happening.

Keep Rent Priced Fairly

Pricing your units at market value makes you a competitive property and ensures that tenants want to stay. If you’re charging too much, there’s a higher chance that your tenants will leave for a unit more fairly priced in the city. Don’t undercut yourself in the process, but keeping your property the right price will also keep your tenants.

Property Management and Tenant Turnover

There’s a lot to keep in mind when it comes to tenant turnover, and we understand how overwhelming it can be. So, if you’re ready to reduce your tenant turnover rate, Wolfnest is here to help. With experienced property managers, we can help make your property as profitable as possible. Finding long-term, reliable tenants is an important aspect to reducing turnover, and we can help with that. Contact us today to learn more about our property management services, and what we can do for you.

Our Utah SEO Company

Our Utah SEO Company

Utah SEO

Succeeding in the property management industry in Utah can be difficult due to the many competitors. In order to stand out from the competition, we here at Wolfnest have to make sure both landlords and renters can find our business online. Not only do we have to ensure that our website is simple and easy to use, but we also have to ensure that our potential clients are easily able to find our website in the first place. So, in order to do this, we began working with Firetoss, an agency here in Utah that offers various digital marketing services. Since the beginning of our partnership several years ago and still today, Firetoss helps us continue to build and maintain a strong digital presence with their Utah SEO services.

What Is SEO?

If you are familiar with digital marketing, you have probably heard the term “SEO” before. SEO stands for search engine optimization and is the process of increasing the visibility of your website to search engines, therefore driving more digital traffic to your website. On average, Google processes over 40,000 search queries every second, which translates to over 3.5 billion searches per day. And, that doesn’t even include other search engines such as Bing or Yahoo.

SEO Services

So, what does this mean? It means that users are flocking to search engines to help them find the answers, services, and products they are looking for. But, research shows that users overwhelmingly choose the first few organic listings on the search engine results page (SERP), with click-through rates decreasing to less than 3% after the 6th listing. SEO helps optimize your website, increasing its ranks on the SERPS, and ultimately driving more traffic to your site.

Utah SEO Services

Understanding the importance of SEO, we knew we needed some help with our Utah SEO for our website. Instead of trying to tackle the optimization of our website ourselves, we wanted the expertise of the Firetoss SEO team so that we could focus on the parts of our business that we love- like our customers. By partnering with Firetoss for their digital marketing services, we are able to spend more time managing our rental owners’ properties, solving problems, and keeping our clients happy and satisfied.

Here are some of the ways in which Firetoss helped build and execute our Utah SEO strategy.

Initial Research & Goal Implementation

To fully understand what it is we do here at Wolfnest, the Firetoss marketing team started out by strategizing and researching our industry, business, and website. On top of that, they also researched our competitors, performing a competitive analysis that showed us where we had opportunities to improve and stand out.

Using this information, Firetoss, in collaboration with our team, developed our Utah SEO strategy. By working with us, the experts at Firetoss were able to clearly understand our goals and put a plan in place that would help meet the KPIs we had designated. Having these clear, definable goals gave us a path to success and helped us understand the work Firetoss would be doing going forward for our site.

Technical SEO

Technical SEO services include things like optimizing page speed, ensuring a mobile-friendly site, creating sitemaps, adding structured data, and optimizing image types and sizes. These elements of Utah SEO will help search engines crawl and index your site effectively- which is the first step to ranking.

Things like improving page speed improve the user experience of your site, keeping users on your site as opposed to leaving and choosing a competitor instead. So, why do search engines care about performance? Well, search engines like Google want users to have a great experience too because that helps ensure that users will return to Google as opposed to other search engines. This is why search engines use page speed to help rank websites on their SERP.

These technical issues are only part of SEO digital marketing services, but they are extremely important. And, they take time and expertise to implement. That’s why we chose to have Firetoss take care of these technical fixes instead of investing a large amount of time it would take to do it ourselves.

Digital marketing services

Content and Link Building

Other than technical SEO services, Firetoss helped us improve the content on our site while implementing a strategic link structure as well. Content is a way to provide users fresh, valuable information, increasing the E-A-T (expertise, authoritativeness, and trustworthiness) of your site. This helps in two ways- it builds brand awareness and trust on the user end, and it improves rankings.

With Firetoss, not only were we able to produce more high-quality content like landing pages and blogs, but we were also able to strategically place keywords throughout the content, helping to increase traffic. Keyword optimization includes placing important keywords in the body, headers, URL, image alt text, and meta tags of your pages. And by working with Firetoss, we didn’t have to worry about any of this, as they researched and found the terms with the highest search volume and placed them in the proper elements throughout our site.

Linking is another crucial aspect of Utah SEO, and Firetoss helped create and implement a linking structure for our site, using current and future content. Linking is another way that Google judges authority, and it also helps users and search engines navigate your site.

Wolfnest and Firetoss

Through working with Firetoss, their Utah SEO team was able to transform our website to a potential landlord and/or renter’s dream tool, packed with information, helpful articles, and listings. We are ranked at the top of Google for our desired keywords all thanks to the SEO services Firetoss has to offer. We continue to work with them to maintain our rankings and drive even more customers to our site. So, check out their Utah SEO services!