🇺🇸United States

Lost Rent from Extended Make‑Ready and Inspection Cycles

5 verified sources

Definition

When unit inspections, repairs, and cleaning stretch from a few days to several weeks, the unit sits vacant and produces no rent. Industry guidance warns that turnovers lasting 10–14+ days between move‑out and rent‑ready condition are common, directly eroding rental income.

Key Findings

  • Financial Impact: For a $1,500/month unit, a 14‑day make‑ready instead of 5 days loses ~9 extra vacancy days ≈ $450 per turn; at 100 turns/year this is ≈ $45,000/year in lost rent portfolio‑wide.
  • Frequency: Daily (portfolio level) / Every turnover (unit level)
  • Root Cause: Unstructured make‑ready inspection workflows, poor coordination of vendors, and lack of standardized checklists lengthen the time between move‑out, inspection, and declaring the unit rent‑ready, increasing non‑revenue days.[1][2][3][6][7]

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Leasing Residential Real Estate.

Affected Stakeholders

Property managers, Leasing agents, Maintenance supervisors, Owners/asset managers

Deep Analysis (Premium)

Financial Impact

$22,500-$47,250 per semester (assuming 50 units × $1,500/month, 15-21 day slippage) • $375-$750 per unit per turn (5-10 day extension on $1,500/month); at 40 subsidized units/year = $15,000-$30,000 • $45,000 annual lost rent from prolonged vacancies.

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Current Workarounds

Email chains with corporate client and maintenance; manual inspection scheduling; WhatsApp escalations for urgent repairs • Email/phone coordination with corporate client liaison; manual inspection scheduling; WhatsApp urgency escalations • Excel logs for repair prioritization.

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Unrecovered Tenant Damage Due to Weak Move‑Out/Make‑Ready Documentation

If avoidable damage averaging $200–$400 per move‑out is missed or cannot be substantiated in 10% of 100 annual turns, unrecovered costs can easily reach $2,000–$4,000/year for a small portfolio and scale into tens of thousands for larger portfolios.

Excessive Turnover and Make‑Ready Costs per Unit

At $4,000 per turn, a 100‑unit property with a 40% annual turnover rate incurs ≈ $160,000/year in turnover‑related costs; even a 10% process inefficiency in make‑ready steps equates to ≈ $16,000/year in avoidable expense.

Rush Labor, Overtime, and Premium Vendor Charges During Peak Turn Season

If rush labor and overtime add even $150 in extra contractor or in‑house labor per unit across 50 turns in peak season, that is ≈ $7,500/year in incremental, largely avoidable cost.

Repeat Work Orders and Re‑Inspection from Incomplete Make‑Ready

If 20% of turns generate an extra $75 truck roll and minor material due to missed items, a portfolio with 100 annual turns incurs ≈ $1,500/year in direct rework cost, plus any rent concessions (e.g., $50–$100 each) layered on top.

Delayed Move‑In Dates and Slower Time‑to‑Cash from Prolonged Make‑Ready

A 3‑day delay to move‑in at $1,500/month rent costs ≈ $150 in lost rent per unit; across 50 delayed move‑ins per year this is ≈ $7,500 in cash‑flow delay and permanent revenue loss.

Bottlenecks in Turns Reduce Effective Leasing Capacity

If inspection bottlenecks add an average of 2 idle days to 100 annual turns at $1,500/month rent, that is ≈ 200 idle unit‑days, or about $10,000/year in lost leasing capacity.

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