Posts about Tenants (2)

Rental turnover costs are a serious challenge for property managers and brokers, especially when the turnover rate is high. According to the National Apartment Association, the average tenant turnover rate is around 40%. So that means if you’re managing 200 units, then 80 units will turnover each year. Those add up, meaning you’ll be turning 6-7 units every month. And the cost of each of those 80 turnovers chips away at the bottom line of your rental income.

When you add up your tenant vacancy costs, you’re likely thinking of lost rental income, which is easy to quantify -- you know exactly how much potential revenue you’re missing. You probably also automatically count in any mortgage payments or HOA fees that you’ll need to continue to pay even though the property isn’t earning any income. Those are hard costs that are easy to see.