Enter your email address for weekly access to top multifamily blogs!

Multifamily Blogs

This is some blog description about this site

Resident Retention: The True Cost of Turnover

Resident Retention: The True Cost of Turnover

In my last post, I made the bold claim that every time a resident chooses not to renew his or her lease, it costs the property an average of $4300. One reader asked me to break down the $4300 cost, and I thought that was an excellent opportunity for all of us to compare some notes. I have just updated all our figures, and the economic landscape has improved... a bit. Based on national average rent and concession data from Axiometrics, turnover costs have dropped to just over $4000 per move out - still quite painful! Here's the breakdown:



Obviously, different markets are experiencing different average rental rates, different concessions, different vacancy loss days, etc. But this gives a starting point to begin evaluating what the true cost of turnover is for your community.

I went through this exercise with a group in the Orlando, Florida area and a group in the Rochester, New York area recently. Two very different markets, but with surprisingly similar turnover costs. Each group calculated turnover costs ranging from $2700 to $4000 per move-out.

What turnover costs have been overlooked here? Over stated? Under stated? 

Jen Piccotti is the VP Consulting Services for SatisFacts Research, the experts in resident feedback and retention programs. www.SatisFacts.com

 

Recent Blogs