Are you just accepting high restoration costs when a tenant moves out?

Today, I would like to talk about "restoration costs upon move-out," which is often one of the most troublesome expenses in rental property management.

Have you ever had the experience of being surprised by the quote submitted by a contractor after a tenant has moved out, thinking, "Does it really cost this much?"

In conclusion, you should not simply accept the initial quote provided by the contractor at face value.

When looking at many quotes in the field, I often encounter cases that deviate significantly from fair market prices. In fact, I am currently in the middle of negotiating restoration costs for one of my own properties with a contractor who provided a quote that is clearly higher than the market rate.

There are two main points to check when a high quote is submitted.

First, is the unit price appropriate? Check whether the unit price per square meter for tasks like wallpaper replacement or cushion floor replacement is marked up above the market rate. Even a small difference in unit price can result in a large difference in the total amount for the entire room.

Next, is the scope of work reasonable? Is it really necessary to replace everything to that extent? Determine whether items that could be handled by cleaning or partial repairs are being listed as "new replacements" across the board.

Simply asking them to "make it cheaper because it's too expensive" will not lead to a successful negotiation. You need to discuss it with concrete evidence, such as "For this square footage, it should normally cost about this much" or "Isn't this area sufficiently manageable with cleaning?"

To conduct high-quality rental management, it is essential to open the black box of quotes and cut unnecessary costs, rather than just leaving everything to the contractor.

I am also thinking of sharing the tough negotiation process I am currently going through with the contractor as a piece of know-how once it has settled down.

Next time you have restoration work, please take a close look at the "details" of the quote.