What is an Apartment Turn Costing You?
Hint: It’s probably more than you think.
The moving van pulls up to your community, but the apartment home isn’t ready. Every property manager’s worst nightmare come to life… How many calls does it take to get an apartment home ready for a new resident? The answer to this question leaves us with a number that is way too high for many property managers and maintenance teams. As you know, the cost of getting an apartment home move-in ready is dependent on the trend of renewals, and the nationwide rate of residents who renew their leases is currently at more than half. But turning an apartment has always been an overwhelming factor in property management.
What is the number one challenge for a property manager in multifamily living? We asked several property managers, and the same answer consistently rose to the top: resident retention. As you know, many residents get frustrated when maintenance requests are not completed promptly. But, the residents don’t know what you know… that the site team logs hundreds of hours working to get new homes move-in ready, often unintentionally neglecting their current resident needs.
WHAT YOU NEED is a property solutions partner!
“We are proud to say that our main goal is not to increase our business, but to be a standard-setting partner by helping our clients increase resident retention, by giving site teams time to focus on what matters most… their residents,” said Valet Living Vice President of Business Development, Steve Davis. “With Valet Living, you only have to make one phone call, schedule with one vendor, and process one invoice — with no nickel-and-dime surprises and the best quality assurance in town.”
The time it takes to get homes ready varies depending on how old the community is, how long the prior resident lived in the apartment home and in what condition it was at the time of move-out. Many companies in the industry use seven working days as a guideline to turn a home, but management groups expect five. Having a well-trained make-ready team that possesses the skills and knowledge to perform at its highest potential and speed is the key to increasing resident satisfaction and operational efficiencies.
To truly understand the cost involved in turning over an apartment home, the property team needs to break down the number of services needed in every vacant home, and then multiply that by the number of homes needed to be ready for the next resident to move in, comfortably. If this feels overwhelming, try to factor hours spent managing multiple vendors and projects, invoicing platforms, compliance programs, and more. Take a breath. This is our wheelhouse. Valet Living’s property solutions team is built on the foundation of handing the most difficult ‘turns’ needs for vacant apartment homes and putting them all in one channel of invoicing.
Let’s look at economic impact of a 300-home community in Dallas, Texas. Not only does the community free up time to focus on resident needs, but it also experiences both labor savings from time previously spent managing contractors as well as an increase in rental income due to reduced vacancy loss.
A 300-HOME Dallas Texas Community Case Study
— 15 hours per week spent on contractor management (emails, text messages, phone calls, meetings, access to homes, etc.) at $27 per hour during peak leasing season (16 weeks) Annual Savings $6,480
— 10 hours per week at $27 per hour during regular season (36 weeks)
Annual Savings $9,720
TOTAL ANNUAL LABOR COST SAVINGS $16,200
Rental Income Increase from Reduced Vacancy Loss:
— Average rent $1,500 monthly/$50 daily
— Giving back average of 3 days due to increase turn days @ $150 per apartment home
— 180-home turnover x $150 days available on market
TOTAL ANNUAL RENTAL INCOME
TOTAL ANNUAL FINANCIAL IMPACT $43,200
Valet Living’s goal is a simple one, to decrease turnover year over year by giving maintenance teams valuable hours back to help keep current residents happy. The Valet Living property solutions team does the heavy lifting of turning apartment homes, and you worry about what matters most — your residents!
The next time the moving van pulls up, be ready with Valet Living on your side!
A 300-HOME Dallas Texas Community Case Study
Day to day Valet Living has proven to stay on top of scheduling and is always communicating with both myself and maintenance to make sure the process of turning our homes is off management hands, which in return helps me focus my time and energy on current resident issues,” says Daena Owhe – Property Manager with SIMC Management. “Not to mention we were the number one community of SIMC Management for 2017, and this has a lot to do with how well we were able to accomplish one of our many goals when we decided to turn our apartments with Valet Living last summer. It’s been a very productive year working with Valet Living, and I appreciate all of the hard work and continued success.