What Is Turnover?

Understanding the True Cost of Turnover

Turnover is one of the biggest hidden costs in rental property ownership. Most landlords underestimate it because they only think about the repair costs. But the total cost includes lost rent during vacancy, repair and cleaning costs, marketing and showing time, screening costs, and your time coordinating everything.

For a $1,500/month unit, a typical turnover looks like this:

• Lost rent (3 weeks average vacancy): $1,125
• Professional cleaning: $250
• Paint (full unit): $600
• Carpet cleaning: $200
• Minor repairs (hardware, caulk, touch-ups): $200
• Marketing (listing photos, advertising): $50
• Screening costs: $40
• Your time (15-20 hours at implied $50/hour): $750-$1,000

Total: $3,215-$3,465 per turnover. For a portfolio with 10 units and average turnover of 30% annually (3 turnovers/year), that is nearly $10,000/year in turnover costs.

This is exactly why tenant retention is so valuable. Every renewal you secure saves you $3,000+.

The Turnover Process Step by Step

Before move-out (30-60 days prior):

• Confirm move-out date and key return procedure
• Schedule contractors (cleaner, painter, handyman) tentatively
• Order any materials you know you will need (paint, filters, hardware)
• Begin marketing the unit if your state allows showing occupied units

Day 1 (key return):

• Conduct move-out inspection immediately
• Document condition with photos and written notes
• Confirm the scope of work needed
• Finalize contractor schedule

Days 2-5 (make-ready):

• Cleaners do a deep clean (Day 2)
• Painters start while cleaners finish (Day 2-4)
• Handyman handles repairs (Day 3-5)
• Carpet cleaning or replacement (Day 4-5)
• Final walk-through and quality check (Day 5)

Days 5-7 (marketing and showing):

• Take professional listing photos
• Post listing on rental platforms
• Show the unit and collect applications

Real Example: Efficient vs. Slow Turnover

Efficient turnover: Tenant moves out March 1. You inspect March 1. Cleaners come March 2. Painter starts March 2 (separate rooms from cleaners). Handyman fixes minor items March 3. Carpet cleaning March 4. Listing goes live March 4 (unit was pre-listed March 15). New tenant approved and signs lease March 8. Move-in March 10. Total vacancy: 9 days. Lost rent: $450.

Slow turnover: Tenant moves out March 1. You inspect March 3 (busy weekend). Call cleaners March 4, they cannot come until March 8. Painter starts March 10. Handyman comes March 14. Carpet cleaning March 16. Listing goes live March 17. First showing March 20. Approved tenant March 28. Move-in April 1. Total vacancy: 31 days. Lost rent: $1,550.

Same unit, same work needed. The efficient turnover saved $1,100 in lost rent just by having contractors pre-scheduled and overlapping tasks.

How to Minimize Turnover Costs

Reduce turnover frequency. Focus on retention. Modest rent increases, responsive maintenance, and good communication keep tenants in place. Every avoided turnover saves $3,000+.

Pre-schedule everything. The moment you know a tenant is leaving, book your contractors. Waiting until move-out day to start calling around adds days of vacancy.

Use durable materials. Invest in scrubbable paint, LVP flooring instead of carpet, durable countertops, and commercial-grade fixtures. Higher upfront cost, lower turnover cost every time.

Standardize your process. Use the same paint colors, the same cleaning crew, the same checklist every time. Standardization reduces decision-making and speeds up the process.

Common Mistakes

Waiting to start marketing. In most states, you can list a unit while it is still occupied (with proper notice for showings). Start collecting applications before the current tenant moves out so you can minimize the gap between tenants.

Over-improving during turnover. Turnover is not renovation time. Fix what is broken, clean what is dirty, paint what needs painting. Save major upgrades for a planned renovation with a CapEx budget.

Not inspecting your contractors' work. Do a final walk-through before the new tenant moves in. Check the painter's edges, test the plumber's work, verify the cleaner actually cleaned behind the oven. Sloppy work creates problems on Day 1 with the new tenant.

Not tracking turnover costs. If you do not know what each turnover costs you, you cannot optimize the process. Track every expense and every day of vacancy for each turnover.

Frequently Asked Questions

What is a normal turnover rate for rental properties?

Industry average is about 40-50% annually (meaning 40-50% of tenants leave each year). A well-managed property with good tenant screening and retention can achieve 20-30% turnover. Single-family homes typically have lower turnover than apartments.

Should I renovate during turnover?

Only if it makes financial sense. If a $5,000 kitchen update allows a $200/month rent increase, that pays back in 25 months. If the market does not support higher rent, save the renovation for a planned CapEx project and just make the unit clean, functional, and move-in ready.

Can I charge the outgoing tenant for excessive turnover costs?

You can deduct repair costs for damage beyond normal wear from the security deposit. If costs exceed the deposit, you can bill the tenant and pursue collection through small claims court. Standard turnover costs (paint after 3+ years, carpet cleaning without stains) are generally your responsibility.