I've been getting slammed with the cost of make readies on pretty much every one of my rentals. Mind you, a good number have been evictions so the tenants leave the homes trashed! Regardless, I'm struggling with the reality of what it's costing me to have the houses done for the next tenant. For example.. I've recently received a bid for close to 10,000! It's needing a substantial trash out, full paint, carpets replaced (going w a cheap vinyl or laminate) a cleaning and some tree trimming. It's a 4br 2 bath about 1175 sq ft. My rentals are class B/C. Am I wrong by having sticker shock? If so, any suggestions on some more reasonable contractors?

Are you wrong for having sticker shock? NO

Keep this pain in mind as you tighten up your screening.

Get Judgements, garnish wages; if you find that you cannot, learn why not and make adjustments.

It's like a line, with turnover at one end, and then renovation at the other end.

Cleaning is a basic make-ready thing. Tree trimming is normal maintenance, but is better for the fall/winter. De-trashing comes with the territory of a bad eviction. Replacing flooring comes into play in the worst situations.

You sound like you've definitely crossed the line into renovation territory.

When you say "pretty much every one of my rentals" and "a good number have been evictions", that implies that there are problems on both sides, most likely with screening.

When you say "going w a cheap vinyl or laminate", you have two choices. You can either get a cheap floor, and have it last maybe 5 years before it needs total replacing, or you can get something more durable out of the lower-middle range of your flooring options, and have something that will last you 15-20 years or more. For example, for my first renovations, I went with closeout vinyl tiles that were around 49-69 cents/sf, and they were nice, and okay... but they weren't durable, didn't wear well, and couldn't take the stress of rentals. Now, I'm more in the $1.29-$1.69/sf range, and I'm much more satisfied with the durability.

Don't overimprove. One good rule of thumb is to look at what's cheapest-- and then see what you can get by buying the next grade or two better. You'll get much better results for not a whole lot of extra.

I'm going through this right now too but it's more because the place is dated looking and needs a lot of upgrades.

Yep...you need to be work on more screening prior to giving keys. Lots more work there to be done.

bid $10,000

$1000 trash out

$2000 full paint and labor

$3000 carpets replaced (vinyl or laminate)

$500 cleaning

$1200 tree trimming.

(Tree trimming is maintenance not tenant damage)

Does that add up 10 $10k... get another bid. Is there anything you can do yourself to save to out lay of cash?

What amount of deposit do you get? Trash out and cleaning certainly could be paid for with deposit. Paint and flooring depends on the age and type of damage.

Pet damage?

You're are the right place to ask the question and because you asked... ready for some changes in your business?

Consider finding a few $10/hr guys to do unskilled/low-skilled jobs.

I own a duplex with an partner. I rented out one unit and my partner the other. It took him 3 days to find someone and sign a lease. It took me over a month to find someone I'd consider renting.

Within a few months my partners tenant stop paying rent and it took 3 months to evict. Then it took him a month to fix the place up, costing over $15,000.

My tenant who I hand picked out of 9 applicants is still there after 11 years. He pays current market rents and has no problem with annual rent increases.

My partner still hasn't learned, he is on his third eviction.

How much of this is deferred maintenance versus "make ready".

Did the tenant destroy the painted walls? Did they destroy the carpeting? Did they make the trees overgrow?

You should be setting aside cash reserves for normal but irregular expenses (roofs/flooring/etc).

Jo, sceening is key in this business, we invset in people.

Get some more bids.

Tell us what is your screening policy?

I think we can help more, once we find out what you do or don't do.

I dont know your market costs.

JO, you asked for suggestions...

I wish I could give you a spoon full of sugar to help the medicine go down... because you may not like what I have to say.

It's not the houses that need to be renovated. Your whole rental business approach needs to be closely re evaluated and renovated.

Until you stop blaming the problem on tenants trashing your places, you will continue to spend thousands of dollars unnecessarily. And you talk as though it's normal for an evicted tenant to trash a place. Not in my world. I had a resident scheduled for eviction next week. They cooperated and moved out this week. After a couple hundred dollars turn around expense, next person scheduled to move in Monday. But that scenario took into account my whole approach to dealing with residents from day one.

My suggestion: Make plans now to come to the next landlording boot camp in November and let me help you change your entire approach to managing your rentals and give you the tools to do so. The cost is chump change, less than a thousand dollars, compared to the tens of thousands of dollars you may end up spending over the next few years.