Owning rental properties is a long game, and one of the most critical factors in long-term success is reducing tenant turnover. Every time a renter moves out, landlords face not only lost rent but also the costs of preparing the property for the next tenant.The Dominion Group, an experienced real estate investment firm reports that the average turnover cost for our rentals currently ranges between $10,000 and $15,000. These costs have steadily increased over the past 3 to 5 years, driven by the lasting impact of COVID on contractor labor shortages and rising construction material prices. Brian Leibowitz, Head of Acquisitions at Dominion Properties, emphasizes the importance of minimizing turnovers: “Now more than ever, keeping turnovers low in your portfolio can be the key to staying cash flow positive.”
At Dominion Properties, we’ve fine-tuned our renovation approach to keep tenants happy, minimize vacancies, and maximize rental income. We maintain a long tenancy term of 5-6 years, while the national average is only 2-3 years! Our in-house construction team specializes in making strategic updates that extend tenant stays and reduce long-term maintenance costs. Here’s how we do it.
Designing for Longevity and Tenant Satisfaction
A rental renovation is not the same as a retail home flip. Renters aren’t looking for trendy backsplash designs or luxury finishes—they want functionality, durability, and a home that meets their family’s needs. That’s why we approach every renovation with consistency and longevity in mind.
Basements: The Secret to Longer Tenant Stays
One of our key strategies is finishing basements and adding bathrooms whenever possible. We’ve found that tenants stay significantly longer when their home can accommodate their growing needs. Instead of squeezing an extra bedroom into a small space, we prefer to create additional living areas, like a finished basement family room. This approach ensures tenants don’t outgrow the property too quickly, saving landlords from costly turnover.
Standardized Materials for Efficiency and Cost Savings
Our renovations follow a standardized model to maintain quality while keeping costs predictable. We use the same high-quality materials in every rental property, including:
- Commercial-grade blue carpet – Normal wear and tear such as stains are not as visible. The carpet also allows for easy patch repairs, extending the life of the flooring.
- Granite countertops – More durable than laminate, resistant to damage from hot pots, and a major selling point for tenants.
- Luxury vinyl plank (LVP) flooring – Nearly scratch-proof, making it ideal for high-traffic rental properties.
- Uniform kitchens and bathrooms – By using the same cabinets, appliances, and tiles in every property, we streamline renovations and repairs. If a fridge or cabinet door needs replacement, we have it on hand – no waiting, no costly special orders.
- Consistent paint colors – We exclusively use Sherwin-Williams’ ‘Storm Cloud’ for master bedrooms and ‘March Wind’ for all other walls. This ensures easy touch-ups and a clean, professional look across all our properties.
Are You a Tired Landlord? Let Dominion Take Over
If handling renovations and turnovers is wearing you down, there’s another option. Dominion Properties offers fair cash offers for landlords who are ready to step away from the hassle of rental management. Sell your property on your terms and let us handle the hard work. Contact us today to learn more!