An apartment turnover business is a type of service that specializes in preparing rental units for new tenants after the previous ones have moved out. This involves a range of tasks, such as cleaning the unit, repairing any damages, repainting or touching up walls, replacing fixtures, and ensuring that all appliances and utilities are in good working order.
This type of service is often employed by property management companies, landlords, and real estate agents to help streamline the process of moving tenants in and out of rental properties.
The apartment turnover business belongs to the property management industry, and available data shows that the global property management market is projected to grow from $19.33 billion in 2022 to $37.25 billion by 2029, at a CAGR of 9.8 percent. The property management market size in the United States reached $101.3 billion in 2021.
Steps on How to Start an Apartment Turnover Business
Table of Content
Conduct Market Research
To conduct market research for an apartment turnover business, it is important to identify the target market and understand its needs and preferences.
This can be done through surveys, focus groups, and analyzing industry trends. It is also important to research competitors and their offerings, as well as pricing strategies, and identify the types of customers you want to serve, such as property management companies, individual landlords, or real estate agents.
Social media can be a valuable tool for gathering insights into consumer behavior and preferences. Once the research is conducted and concluded, it can be used to develop marketing strategies and tailor products and services to the target market.
a. Who is the Target Market for Apartment Turnover Business?
The target market for an apartment turnover business includes property management companies, individual landlords, and real estate agents who manage or own rental properties. These are the customers who need the services of an apartment turnover business.
b. Is Apartment turnover Business a Profitable Business?
Yes, the apartment turnover business is a profitable business. Available research shows that the global property management market is projected to grow from $19.33 billion in 2022 to $37.25 billion by 2029, at a CAGR of 9.8 percent in the forecast period.
c. Are There Existing Niches in the Industry?
No, there are no clear-cut niche ideas when it comes to the apartment turnover business because the apartment turnover business is a niche idea in the property management industry.
d. Who are the Major Competitors?
- TurnKey Vacation Rentals
- Rent Ready
- Apartments ASAP
- Rebound Property Services
- CleanVue Services
- Rent Ready Solutions
- Fast Turnaround Cleaning
- Turnover Pro
- Done Rite Cleaning and Turnover Services
- All Seasons Property Services
- Cleanology Inc.
- On-Demand Apartment Services
- Clean Getaway Rentals
- Apartments Cleaned Right
- RAZ Cleaning Services
- Turnover Pros
- Elite Apartment Services
- Rapid Response Maintenance Services
- Skyline Apartment Services.
e. Are There County or State Regulations or Zoning Laws for Apartment Turnover Business?
Licensing requirements may vary by state and may require an apartment turnover business to obtain a license to operate legally. Building codes may also apply to apartment turnover businesses, particularly in terms of safety standards for rental properties.
Zoning laws may determine where apartment turnover businesses can operate, as some areas may be zoned for residential or commercial use only.
Environmental regulations may also be a concern for apartment turnover businesses, particularly those that handle hazardous materials such as cleaning chemicals or paint. Please note that it is important for apartment turnover businesses to comply with all relevant regulations and zoning laws in their area to ensure that they are operating legally and safely.
f. Is There a Franchise for Apartment Turnover Business?
No, there are no franchise opportunities for apartment turnover business.
g. What Do You Need to Start an Apartment Turnover Business?
- Business plan
- Legal structure
- Licenses and permits
- Standard office facility in a suitable location
- Equipment and supplies
- Marketing and advertising
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for an apartment turnover business are;
Creative Apartment Turnover Business Name ideas
- Jackson Jean® Apartment Turnover Company, Inc.
- Skylar Patel® Apartment Turnover Company, Inc.
- Olivia Fischer® Apartment Turnover Company, Inc.
- Adam Gonzales® Apartment Turnover Company, LLC
- Alyssa Wong® Apartment Turnover Company, Inc
- Benjamin Singh™ Apartment Turnover Company, LLC
- Rachel Murphy® Apartment Turnover Company, Inc.
- Ian Kim® Apartment Turnover Company, LLC
- Victoria Gonzalez® Apartment Turnover Company, Inc.
- Marcus Li© Apartment Turnover Company, LLC
- Alexandra Santos® Apartment Turnover Company, Inc
- Elijah Baker® Apartment Turnover Company, Inc
- Maya Patel™ Apartment Turnover Company, Inc
- Andrew Fernandez® Apartment Turnover Company, LLC
- Emily Yu® Apartment Turnover Company, Inc
- Samuel Rodriguez® Apartment Turnover Company, Inc
- Isabella Chen™ Apartment Turnover Company, LLC
- Nicholas Martin© Apartment Turnover Company, LL
- Mia Thompson® Apartment Turnover Company, Inc.
- Ethan Lee© Apartment Turnover Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for Apartment Turnover Business?
The best type of business structure for an apartment turnover business depends on several factors, including the size of the business, the number of owners, and the level of personal liability exposure the owners are willing to accept. However, we usually recommend a limited liability company (LLC) for apartment turnover business.
An LLC is a popular choice for startup businesses because it offers personal liability protection for the owners while allowing them to be taxed as a pass-through entity. This means that the profits and losses of the business are passed through to the owners’ personal tax returns, avoiding double taxation.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open an Apartment Turnover Business?
- Business License
- Building permit
- Fire safety license and permit
- Resale license or sales tax permit
- Professional license
- Zonal permit.
d. What Type of Certification is Needed to Open an Apartment Turnover Business?
- Certified Apartment Turnover Professional (CATP) Association Education Institute (NAAEI)
- Certified Apartment Maintenance Technician (CAMT)
- Certified Property Manager (CPM)
- Certified Apartment Manager (CAM)
- Certified Apartment Supplier (CAS)
- Certified Facilities Manager (CFM)
- National Property Management Association (NPMA) Certification
- Certified Professional Maintenance Manager (CPMM)
- Building Owners and Managers Association (BOMA) International Designations and Certificates
- Certified Maintenance and Reliability Professional (CMRP).
e. What Documents are Needed to Open an Apartment turnover Business?
- Business plan
- Business License
- Employer Identification Number (EIN)
- State-specific licenses and permits
- Building permit
- Fire safety license and permit
- Resale license or sales tax permit
- Professional license and certifications
- Zonal permit
- Insurance policies
f. Do You Need a Trademark, Copyright, or Patent?
In general, while obtaining a trademark, copyright, or patent is not required for an apartment turnover business, doing so can provide legal protection for the business’s intellectual property and can help prevent others from using or copying its unique ideas or brand identity.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start an Apartment Turnover Business?
The total cost to start an apartment turnover business can range from $50,0000 to over $500,000 depending on the size and scope of the operation. It is important to carefully consider all of the startup costs and develop a comprehensive business plan to ensure that the business has enough capital to cover expenses and turn a profit.
b. What are the Costs Involved in Starting an Apartment Turnover Business
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $3,800.
- Marketing, Branding, and Promotions – $1,000.
- Business Consultant Fee – $4,500.
- Insurance – $2,800.
- Rent/Lease – $60,000
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
- Operational Cost (salaries of employees, payments of bills et al) – $45,000
- Store Equipment (cash register, security, ventilation, signage) – $2,350
- Equipment, Furniture, and supplies – $35,000
- Working Capital: $500,000
- Website: $1,200
- Opening party: $3,000
- Miscellaneous: $5,000
c. What Factors Determine the Cost of Opening an Apartment Turnover Business?
- The size of the apartment turnover business and the working capital
- The choice of location
- The required licenses and permits
- The cost of hiring and paying a business consultant and attorney
- The cost of branding, promotion, and marketing
- The cost of furnishing and equipping the apartment turnover business
- The cost of the insurance policy covers
- The cost of registering the business
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost for the grand opening of the apartment turnover business.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
The decision to build a new building for your apartment turnover business is entirely up to you. This is due to the fact that you can run an apartment turnover business from a leased or rented building.
e. What are the Ongoing Expenses of an Apartment Turnover Business?
- Labor costs (wages or salaries of employees or contractors).
- Equipment and supplies
- Transportation costs
- Ongoing expenses related to marketing and advertising include website maintenance, social media advertising, and other promotional materials.
- Insurance (liability insurance and workers’ compensation insurance)
- Legal and professional fees
- Rent and utilities
- Taxes (income taxes, property taxes, and other taxes).
f. What is the Average Salary of your Staff?
- General Manager – $45,000 per year
- Project Manager – $43,000 per year
- Facilities Manager – $40,000 per year
- Marketing and Sales Staff – $36,000 per year
- Administrative Assistant – $35,000 per year
- Customer Service Representative – $32,000 per year
g. How Do You Get Funding to Start an Apartment Turnover Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Ian Kim® Apartment Turnover Company, LLC is a startup apartment turnover business based in San Francisco, California, offering a range of services to landlords, property managers, and rental property owners. Our goal is to provide fast, reliable, and affordable turnover services to clients in the San Francisco, California area.
Our team of experienced professionals will work quickly to clean, paint, and prepare rental units for new tenants. We offer a range of services, including deep cleaning, painting, flooring replacement, appliance installation, and more. Our team is committed to providing high-quality work and exceptional customer service to ensure client satisfaction.
b. Products and Service
- Deep cleaning of apartments, including floors, walls, bathrooms, and kitchens.
- Painting of walls, doors, and trim to freshen up the appearance of the apartment.
- Flooring replacement, including hardwood, vinyl, or carpet.
- Appliance installation, such as stoves, refrigerators, and dishwashers.
- Handyman services for minor repairs and maintenance tasks, such as fixing leaky faucets or replacing light fixtures.
- Dumpster rental and waste removal services.
- HVAC filter replacement and duct cleaning.
- Smoke detector and carbon monoxide detector installation.
- Key duplication and lock replacement services.
- Window cleaning and repair services.
- Mold and mildew remediation services.
- Exterior pressure washing services.
- Carpet and upholstery cleaning services.
c. Mission Statement
Our mission is to provide high-quality and reliable apartment turnover services to property owners and managers, helping them to prepare units for new tenants quickly and efficiently. We strive to exceed our client’s expectations by delivering exceptional service, attention to detail, and cost-effective solutions.
Our vision is to be the leading apartment turnover company in our region, known for our commitment to excellence, reliability, and customer satisfaction.
d. Goals and Objectives
The goals and objectives of an apartment turnover business are to make the rental unit ready for the next tenant as quickly and efficiently as possible, minimize downtime, and maximize the landlord’s rental income.
e. Organizational Structure
- General Manager
- Project Manager
- Facilities Manager
- Marketing and Sales Staff
- Administrative Assistant
- Customer Service Representative
a. SWOT Analysis
- Experienced and skilled workforce with expertise in various trades and services
- Reputation for delivering high-quality apartment turnover services on time and within budget
- Strong relationships with property managers and owners, leading to repeat business and referrals
- A wide range of services offering, allowing the business to meet the needs of various clients
- Ability to leverage technology and automation to streamline processes and improve efficiency.
- Heavy reliance on a few key clients or accounts, makes the business vulnerable to fluctuations in demand or the loss of a key client
- Limited brand recognition or marketing efforts, making it difficult to attract new clients
- Limited geographic reach or service area, limiting growth potential
- Dependence on external contractors or vendors for some services, adds to costs and complexity.
- Increasing demand for apartment turnover services due to growth in the real estate industry and high turnover rates in urban areas
- A growing interest in eco-friendly and sustainable apartment turnover practices, creating opportunities for offering new services
- Expansion into new geographic markets or service areas to increase revenue and market share
- Collaboration with other real estate professionals to offer comprehensive property management services.
- Competition from established and new players in the apartment turnover industry
- Economic downturns or recessions can lead to reduced demand for apartment turnover services
- Changes in zoning or building codes that may affect the operations of the business
- Legal and regulatory risks associated with compliance and liability issues.
b. How Do Apartment Turnover Businesses Make Money?
An apartment turnover business makes money by providing services to property owners and managers to prepare rental units for new tenants. These services typically include cleaning, painting, repairs, and maintenance tasks such as replacing light fixtures, fixing leaky faucets, and installing appliances.
Please note that apartment turnover business charges for these services on a per-unit or per-job basis, and the rates can vary depending on the scope and complexity of the work required. Some companies may charge a flat fee per unit or a percentage of the monthly rent for their services.
c. Payment Options
- Credit or Debit Card
- Electronic Payment Systems such as PayPal or Venmo
- Bank Transfers.
d. Sales & Advertising Strategies
- Building relationships with property owners, managers, and other real estate professionals through networking events, referrals, and online communities
- Creating a website and social media presence to showcase the business’s services, portfolio, and customer reviews. Paid advertising on Google, Facebook, or other platforms can also help to reach a wider audience.
- Regularly sending newsletters, promotions, and updates to existing clients and prospects to keep the business top-of-mind and encourage repeat business.
- Sending targeted mailers or postcards to property owners and managers to introduce the business and generate interest.
- Offering incentives or discounts for referrals from existing clients and encouraging word-of-mouth marketing and building a loyal customer base.
- Partnering with moving companies to leverage opportunities for cross-promotion and referrals, as many tenants will require moving services when they move in or out of a rental unit.
- Attending industry trade shows or exhibitions to showcase the business’s services and stay up-to-date on industry trends and best practices.
a. How Much Should You Charge for Your Product/Service?
The cost of apartment turnover services can vary depending on various factors such as the location, size of the unit, the scope of work required, and the level of competition in the market. However, some apartment turnover businesses charge on average between $300 to $800 per unit, with larger and more complex units costing more.
Additionally, some apartment turnover businesses may charge a percentage of the monthly rent as their fee for turnover services. The percentage charged can vary but is typically around 50% to 100% of the first month’s rent.
b. How Much Profit Do Apartment Turnover Business Owners Make a Year?
The profit apartment turnover business owners make can vary depending on various factors such as the size of the business, the level of competition in the market, the pricing strategy, and the efficiency of the operations. However, an apartment turnover business owner should make over $50,000 in profit annually.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the apartment turnover business
- The service offerings of the apartment turnover business
- The location of the apartment turnover business
- The management style of the apartment turnover business
- The business approach of the apartment turnover business
- The advertising and marketing strategies adopted by the apartment turnover business.
- The number of years the apartment turnover business has been in business
d. What is the Profit Margin of an Apartment Turnover Business?
Generally speaking, the profit margin for an apartment turnover business is around 10% to 12%. This means that for every dollar earned, the business will keep around 10 to 12 cents as profit after all expenses have been paid.
e. What is the Sales Forecast?
Below is the sales forecast for an apartment turnover business. It is based on the location of the business and other factors as it relates to such startups in the United States.
- First Fiscal Year (FY1): $300,000
- Second Fiscal Year (FY2): $380,000
- Third Fiscal Year (FY3): $550,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Apartment Turnover Business?
- The demography of the location
- The demand for apartment turnover services in the location
- The purchasing power of businesses and residents in and around the location
- Accessibility of the location
- The number of apartment turnover companies and related businesses in and around the location
- The local laws and regulations in the community/state
- Traffic, parking, and security et al
b. What State and City is Best to Open an Apartment Turnover Business?
- San Francisco, California
- Seattle, Washington
- Austin, Texas
- Denver, Colorado
- Nashville, Tennessee
- Raleigh, North Carolina
- Boston, Massachusetts
- Portland, Oregon
- Charlotte, North Carolina
- Dallas, Texas.
c. What Equipment is Needed to Operate an Apartment Turnover Business?
- Cleaning supplies such as brooms, mops, vacuums, dustpans, cleaning chemicals, and trash bags
- Painting supplies such as paintbrushes, rollers, trays, painter’s tape, and drop cloths
- Basic tools such as screwdrivers, hammers, wrenches, pliers, and power drills are required for minor repairs and maintenance.
- Personal protective equipment such as gloves, safety glasses, and dust masks
- Moving supplies such as dollies, hand trucks, and moving blankets may be required to transport furniture and other items.
- Technology such as computers, mobile devices, and software programs
- Van or truck
If you are looking to start an apartment turnover center, then you should make plans to hire employees, because you cannot run this business alone. It requires a team to effectively run an apartment turnover business because there are unique skills required to complete any project.
Launch the Business Proper
Organizing an opening party for a new apartment turnover business can be a good way to introduce your business to the community and create awareness about your services. However, whether or not to have an opening party is a decision that depends on your individual business and goals.
If you want to go ahead to organize a proper launch for your apartment turnover business, then you must make sure to invite potential clients, key stakeholders in the real estate industry, and other members of the community who may be interested in your services.
a. What Makes an Apartment Turnover Business Successful?
- Being consistently reliable
- Excellent customer service
- Excellent facilities
- Attention to details
- Efficient operations
- Compliance with regulations
- Hiring skilled and knowledgeable employees and providing ongoing training that will ensure you deliver high-quality services.
b. What Happens During a Typical Day at an Apartment Turnover Business?
- The owner or manager of the apartment turnover business will start the day by reviewing the schedule of jobs for the day and making any necessary adjustments.
- The workers will then travel to the job sites and set up the necessary equipment and supplies for the day’s work.
- The workers will begin the process of cleaning the apartment, which may include vacuuming, dusting, wiping down surfaces, and cleaning bathrooms and kitchens.
- If the apartment requires painting, the workers will prep the walls, apply primer, and paint the walls with the desired color.
- Once the cleaning and repairs are complete, the workers will perform any final touches, such as replacing fixtures, installing new appliances, or staging the apartment for potential renters.
- After completing the job, the workers will clean up the job site, pack up their equipment and supplies, and return to the office.
c. What Skills and Experience Do You Need to Build an Apartment Turnover Business?
- Excellent Project Management Skills
- Customer Service Skills
- Business Management Skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Organizational skills
- Work experience in the apartment turnover cum property management industry
- Experience in managing people
- Experience in business administration.