#Turnover rate meaning how to#

What apartment turnover costs are so expensive that they should try to be avoided as much as possible? If you’re new to the real estate industry, you might not be completely sure why it is so expensive to not have tenants in your property. This rate is often used by landlords to help plan their budget, rent costs, and more as it can help them predict how much money they expect to need to invest in turnover periods. No rent can be collected during this vacancy period, but other bills and costs associated with the property will still need to be paid.Īs turnover costs can be quite high, most landlords work hard to keep these periods as short as possible.Īpartment turnover rate is the percentage of renters that move out of a property at the end of each contract period.

#Turnover rate meaning how to#

How To Calculate Apartment Turnover RateĪpartment or rental turnover typically refers to the period when one tenant moves out, and then the property is vacant until another tenant moves in.Today, we’ll introduce turnover rate and some solutions to you so that you can make the most of each property! A Table Of Contents For Apartment Turnover Costs Understanding the average turnover rate, how it will affect your business, and what you can do to balance turnover costs are key lessons that all landlords must learn.

Even when you find a new tenant quickly, there is a lot of money that has to be put into properties between tenants to ensure the property is in good condition. Turnover rate plays a huge factor in how much money you make in the rental business. Every month that your property sits vacant is a month of losses, and those losses are going to have a big effect on what your overall profit margin is when you check your bottom line. When you want to make as much money as possible while managing rental properties, keeping your turnover rate in check is going to be very important.