Definition
A unit turn (often called a make-ready) is the work required to transition a unit from one resident to the next. It includes the time it takes to complete repairs and cleaning and the cost of labor and materials to return the unit to rentable condition (or to a targeted renovation standard).
What’s Typically Included
- Inspection: document damages, identify repairs, confirm scope.
- Cleaning: deep clean, trash-out, odor remediation.
- Maintenance repairs: plumbing/electrical fixes, patch/drywall, hardware, fixtures.
- Paint and flooring: touch-up or full paint; carpet clean/replace; LVP repairs.
- Appliances: service/replace ranges, refrigerators, disposals; rekey locks.
- Final QC: punch list close-out, photos, and readiness approval.
Turn Time Matters
Every day a unit is down is lost revenue. Turn performance is often tracked as: days vacant (from move-out to move-in) and days to ready (from move-out to “rent-readyâ€).
Why speed affects NOI
- Faster turns reduce vacancy loss and improve cash flow consistency.
- Slower turns increase economic vacancy and can force concessions to catch up on occupancy.
- Operational bottlenecks (vendor capacity, materials delays) can derail a value-add schedule.
Turn Costs
Turn costs vary widely by asset class, resident profile, and renovation scope. It’s common to separate:
- Standard turn: make-ready to re-rent at current finish level.
- Renovation turn: upgraded scope intended to push rents (value-add).
- Damage / chargebacks: costs covered (or partially covered) by deposits and collections.
How Investors Underwrite Unit Turns
- Loss-to-lease capture: plan rent increases at renewal or at turn.
- Downtime assumptions: build in vacancy days per turned unit.
- CapEx vs. maintenance: classify upgrade scope appropriately (and budget reserves).
- Throughput: estimate how many turns per month the team can complete without hurting leasing.
- Contingency: add buffer for surprises (hidden damage, supply delays, contractor churn).
Example
A 1BR rents for $1,700/month. If the unit is vacant for 14 days during a turn:
- Lost rent ≈ $1,700 × (14 ÷ 30) = $793
If your standard turn costs $1,200, the combined impact of that one turn (cost + downtime) is roughly $1,993 before considering leasing costs or concessions.
Common Pitfalls
- Underestimating downtime: “days to ready†is not the same as “days to leased.â€
- Mixing scopes: blending renovation turns with standard turns hides true unit economics.
- Vendor dependency: one contractor bottleneck can slow the entire business plan.
- Skipping QC: rushed turns can increase work orders, complaints, and early move-outs.
- Over-renovating: upgrades that exceed what the tenant profile will pay for reduce ROI.