Tenant turnover refers to the proportion of tenants that left versus those that stayed at a given property. It is similarly used to refer to the gap of time between the expiry of a lease and the arrival of a new tenant. The goal of successful property managers and owners is, unsurprisingly, to reduce tenant turnover as much as possible to minimize the loss of rental income due to the vacancy of the property.
Tenant turnover can kill profitability, especially due to the process of getting a property ready for a new tenant after a lease expires and the previous tenant moves out.
Property managers and landlords must make turnover as efficient as possible to minimize the vacant property time (time during which there will be zero rental income yet stable maintenance costs). Fortunately, though there are many external factors that contribute to tenant turnover, it's not completely out of your hands.
Though there are many costs associated with tenant turnover, here are some of the main ones:
As we mentioned, its virtually impossible to eliminate tenant turnover, but there are certainly things you can do to reduce it. This includes:
Ultimately, finding a good tenant is one of the best ways to reduce tenant turnover and improve profitability. So, run comprehensive screening, communicate, and get to know your prospective tenants.