Thinking about making your home rental or apartments smoke free?

Thinking about making your home rental or apartments smoke free?

A few articles ago I quoted the price of an average 2 bedroom turn at $4,000.  This includes the cost of vendors, replacements, advertising and payroll for the leasing agents.  That cost is multiplied exponentially if your tenant was a heavy smoker.

“To turn the unit, it costs at least 3-4 times more if the person in the unit was a heavy smoker,” says Eric Wiegers, California Apartment Association Senior Vice President Communications.

That is significant.  If you are already looking at a $4,000 bill, tripling that cost will triple the time it takes to realize a return. 

Let’s say you are charging $800 rent on a two bedroom.  For this example, let’s assume that your tenant left your apartment in a reasonable condition and it only costs you $2500 to turn your unit.  At that price it will take you approximately 4 months to see a return on that investment.  If you have a heavy smoker and need to fully restore your unit you are now looking at nearly a full year of rent to recoup your cost.  With the average lease term running 12 months in California, you are turning your units faster than you can realize a return.

So how will you stop the bleeding and increase your NOI?  Many owners are now restricting smoking to the exterior of their units.

Mission Real Estate & Property Management has a lease addendum available that can instruct your tenants regarding a smoking ban within your units.  Call us if you have any questions on transitioning your investment to a non-smoking property.

http://www.missionRE.com

Athena Magruder

VP Operations

Mission Real Estate & Property Management, Inc.
 3600 Pegasus Dr #15 Bakersfield, CA 93308

(661) 829-7839