Definition
Make-ready cost (also called turn cost) is the total expense to prepare a vacated apartment unit for the next resident. It includes cleaning, painting, repairs, flooring, appliance replacement, and any other work required to bring the unit to leasable condition. Make-ready cost is one of the largest controllable operating expenses in multifamily and directly impacts NOI.
The Formula
Tracked per unit turn, per month, and annually
Example Calculation
Make-Ready Cost Benchmarks
Benchmarks vary significantly by property class, age, market, and scope of standard turn work. The ranges below reflect typical costs for stabilized conventional multifamily properties:
| Turn Type | Scope | Cost Range | Target Days |
|---|---|---|---|
| Light Turn | Deep clean, touch-up paint, minor repairs, carpet clean or replace | $800 – $2,000 | 3 – 5 days |
| Standard Turn | Full paint, flooring replacement, appliance swap, bathroom refresh | $2,000 – $4,000 | 5 – 10 days |
| Heavy Turn | Extensive damage repair, full flooring, HVAC work, plumbing fixes, countertop replacement | $4,000 – $8,000+ | 10 – 21 days |
| Value-Add Renovation Turn | Standard turn scope plus renovation upgrades (countertops, cabinets, fixtures) | $8,000 – $20,000+ | 14 – 30 days |
Important Note
Separate standard make-ready costs from value-add renovation costs in your tracking. Blending the two inflates your apparent turn cost and obscures whether your baseline make-ready process is efficient. Value-add renovations are capital investments; make-ready is an operating expense.
Cost Components
Understanding the component breakdown helps identify where costs are inflating and where savings are available:
| Component | % of Total | Typical Cost Range | Cost Drivers |
|---|---|---|---|
| Paint | 25% – 35% | $500 – $1,200 | Unit size, wall damage, color change, labor rates |
| Flooring | 15% – 30% | $400 – $2,500 | Material choice (carpet vs. vinyl plank), unit size, subfloor condition |
| Cleaning | 10% – 15% | $200 – $500 | Unit condition at move-out, appliance cleaning, deep clean vs. standard |
| Repairs | 10% – 20% | $200 – $1,500 | Wall damage, fixture replacement, plumbing, electrical |
| Appliances | 5% – 15% | $0 – $2,000 | Age and condition of existing appliances, replacement vs. repair |
| Miscellaneous | 5% – 10% | $100 – $500 | Hardware, blinds, caulking, light bulbs, smoke detectors |
Tracking Methods
Effective make-ready cost tracking requires granularity beyond a single number per turn. The most useful tracking framework captures costs at three levels.
1. Per-Unit Turn Tracking
Log every cost component for each individual turn: materials, labor (in-house and contracted), and any appliance replacement. This granularity identifies outlier turns that skew averages and helps distinguish between a $1,500 light turn and a $6,000 heavy turn that required plumbing work.
2. Category Tracking
Break costs into consistent categories (paint, flooring, cleaning, repairs, appliances, miscellaneous) across all turns. This reveals which categories are driving cost increases over time. If average paint cost per turn rises from $700 to $1,000 over 12 months, you can investigate whether it is labor rate increases, more wall damage, or scope creep.
3. Turn-Time Tracking
Make-ready cost includes the hidden cost of vacancy during the turn. Track days from move-out to move-in ready, and from move-in ready to actual move-in. At $55/day in lost rent, reducing average turn time from 12 days to 7 days saves $275 per turn—which adds up to $27,500 annually on a property with 100 turns per year.
4. In-House vs. Contracted Labor
Track which work is performed by on-site maintenance staff versus outside contractors. Contracted work typically costs 30-50% more than in-house labor for the same scope. Understanding this split helps determine whether expanding the maintenance team would reduce total turn cost.
Cost Reduction Strategies
1. Standardize Turn Scope by Tier
Define clear scope standards for light, standard, and heavy turns. Pre-walk every unit within 48 hours of move-out notice to categorize the expected turn tier and order materials in advance. Standardization reduces decision-making delays, enables bulk material purchasing, and sets expectations with contractors.
2. Move to Vinyl Plank Flooring
Carpet is the single largest recurring make-ready expense. Each carpet replacement costs $800-$1,500 and lasts 1-3 resident cycles. Vinyl plank flooring costs $1,500-$2,500 but lasts 5-10 resident cycles with minimal turn cost (cleaning only). The breakeven on vinyl plank versus carpet typically occurs within the second turn.
3. Enforce Move-Out Inspections and Charge-Backs
Conduct thorough move-out inspections and apply damage charges per the lease agreement. Consistent enforcement incentivizes residents to leave units in better condition and recovers a portion of above-normal turn costs. Document everything with photos and standardized inspection checklists.
4. Build In-House Turn Capacity
Properties with sufficient turnover volume benefit from dedicated turn technicians or crews. A two-person in-house turn team can complete 3-5 standard turns per week at a lower per-turn cost than contracted labor. The breakeven for adding a dedicated turn technician is typically 80-100 turns per year.
5. Negotiate Bulk Material Pricing
Consolidate paint, flooring, hardware, and appliance purchasing across the portfolio. Volume discounts of 15-25% on paint and 10-20% on flooring materials are achievable at portfolio scale. Standardize on a single paint color and sheen across all units to eliminate partial-can waste.
6. Reduce Average Days to Make-Ready
Compress the turn timeline through process improvements:
- Pre-walk units 30 days before move-out to identify scope and order materials
- Schedule contractors before the move-out date, not after
- Overlap trades where possible (clean while paint dries in other rooms)
- Stock common make-ready materials on-site to avoid supply runs
- Set target turn completion timelines by tier and track daily progress
7. Improve Retention to Reduce Turn Volume
The cheapest turn is the one that does not happen. A 5% improvement in renewal rate on a 200-unit property with 50% turnover eliminates 10 turns per year. At $3,500 average turn cost, that saves $35,000 annually. Retention improvement through service quality, renewal pricing optimization, and community building reduces total make-ready expense more than any per-unit cost reduction.
Pro Tip
Track the total cost of turnover, not just make-ready cost. Total turnover cost includes make-ready, vacancy loss, leasing expense, and any concessions offered. A $3,500 make-ready cost on a unit that sits vacant for 30 additional days at $55/day of lost rent becomes a $5,150 total turnover cost. This full picture often justifies spending more on retention to avoid the turn entirely.
Frequently Asked Questions
What is the average make-ready cost for a multifamily unit?
The industry average ranges from $1,500 to $4,000 per standard turn for conventional multifamily. Light turns with minimal work average $800-$2,000. Heavy turns with significant repairs or damage can exceed $6,000-$8,000. Property age, location, and maintenance standards significantly affect these ranges. Track your portfolio average and compare to market benchmarks by property class.
How do I separate make-ready costs from renovation costs in my reporting?
Use separate work order categories or cost codes for standard make-ready work versus value-add renovation upgrades. Standard make-ready restores the unit to its prior condition. Renovation adds improvements beyond original condition (new countertops, cabinet refacing, fixture upgrades). Keeping these distinct prevents renovation capital from inflating your apparent make-ready cost.
Should make-ready costs be capitalized or expensed?
Standard make-ready costs (paint, cleaning, minor repairs, carpet replacement) are generally expensed as operating expenses. Capital improvements that extend useful life or add new features (HVAC replacement, new appliances, renovation upgrades) are capitalized. Consult your accounting team for your specific capitalization policy, but the distinction matters for NOI reporting and tax treatment.
How do I reduce make-ready time without cutting quality?
The biggest time savings come from preparation: pre-walk units before move-out, order materials in advance, schedule contractors on the move-out date, and stock common supplies on-site. Also standardize scope by turn tier so the team does not spend time evaluating what to do for each unit. Process efficiency reduces time; cutting scope reduces quality.
Is vinyl plank flooring worth the higher upfront cost versus carpet?
In most cases, yes. Carpet costs $800-$1,500 per replacement and typically lasts 1-3 resident cycles. Vinyl plank costs $1,500-$2,500 but lasts 5-10 cycles with cleaning-only maintenance between turns. The breakeven is usually the second turn. Vinyl plank also commands a modest rent premium in many markets and reduces allergen concerns. It is now the default flooring choice for most institutional operators.
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