Definition
Tenant turnover rate is move-outs divided by average units. High turnover indicates problems and is costly ($1,000-$3,000 per turnover).
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Tenant turnover is costly due to vacancy loss, cleaning, repairs, re-leasing, and screening expenses (typically $1,000-$3,000 per turnover). High turnover suggests problems with property condition, management, or pricing. Retaining good tenants through responsive maintenance and fair treatment improves profitability.
Pro Tip
Invest in tenant satisfaction to reduce turnover.
Example
A 10-unit building with 2 tenants moving out yearly has 20% annual turnover