Tenant turnover is one of the most expensive and underestimated challenges landlords face. While losing a tenant may seem routine, the true cost of turnover goes far beyond a vacant unit—it impacts cash flow, time, and long-term profitability.
In this guide, we break down what tenant turnover really costs and share proven strategies to reduce turnover and protect your rental income.
What Is Tenant Turnover?
Tenant turnover occurs when a tenant moves out and a landlord must prepare, market, and re-rent the property. This process often includes vacancy time, repairs, marketing, and leasing expenses.
The Real Costs of Tenant Turnover
1. Lost Rental Income
Every vacant month equals lost revenue.
Example:
$2,000 monthly rent = $2,000 lost for each vacant month
Even a 2-week vacancy can significantly impact annual returns
2. Make-Ready & Repair Costs
Between tenants, landlords often pay for:
Cleaning and trash removal
Painting and touch-ups
Flooring repairs or replacement
Appliance servicing
These costs add up quickly.
3. Marketing & Leasing Expenses
Re-renting a property typically includes:
Listing and advertising costs
Professional photography
Leasing fees
Showing time and coordination
4. Administrative & Time Costs
Turnover requires:
Lease preparation
Tenant screening
Move-out inspections
Move-in coordination
Time spent managing turnover is time not spent growing your investment.
5. Increased Wear and Tear
Frequent move-outs often result in more damage, higher maintenance needs, and faster depreciation.
How Much Does Tenant Turnover Really Cost?
On average, tenant turnover can cost one to two months of rent—or more—depending on property condition and vacancy length.
Reducing turnover even once can significantly improve annual cash flow.
How to Reduce Tenant Turnover
1. Screen Tenants Carefully
The right tenant is more likely to:
Pay rent on time
Care for the property
Stay longer
Thorough screening is the first step to stability.
2. Price Rent Competitively
Overpriced rent increases turnover risk.
A fair, market-driven price encourages renewals and reduces vacancy pressure.
3. Respond Quickly to Maintenance Requests
Tenants who feel ignored are more likely to move.
Prompt, professional maintenance:
Builds trust
Improves satisfaction
Encourages lease renewals
4. Communicate Clearly and Respectfully
Professional communication fosters positive relationships and reduces misunderstandings.
5. Offer Lease Renewal Incentives
Small incentives can make a big difference.
Examples include:
Minor upgrades
Carpet cleaning
Fresh paint
Fixed rent increases
These are often cheaper than turnover.
6. Maintain the Property Proactively
Well-maintained homes retain tenants longer and attract higher-quality renters.
How Ivy Property Management Reduces Tenant Turnover
At Ivy Property Management, we focus on tenant satisfaction and operational efficiency to reduce costly turnover. Our services include proactive maintenance, professional communication, fair pricing strategies, and retention-focused lease management.
Want to Reduce Turnover and Increase Profits?
If you’re tired of frequent vacancies and turnover costs, Ivy Property Management can help.
Contact us today to learn how our management approach keeps tenants longer and properties performing better.
