Tenant turnover costs are the largest expense for most properties, but landlords don’t always consider these costs when setting budgets and realistic expectations of their return on investment.
From repainting walls and cleaning carpets to upgrading appliances and minor repairs, it’s easily forgotten that marketing and vacancy costs can add up as well. On average the monthly cost of vacancy is approximately $1,750. Putting it into perspective helps you visualize the importance of finding stable, reliable and long-term tenants. Keeping up with preventative maintenance and working to retain your great tenants in place for as long as possible, will keep more money in your pocket in the long run.
There are outside factors that you can’t control like the median age and job gitemth, both of which play an important role in tenant retention. Studies show that turnover is the lowest in our region which is a great start! With 63% of landlords saying they experienced less than 10% of turnover, you can focus on the taking advantage of our rental market by knowing the statistics and staying up to date on avoiding costly vacancy.
However there are many internal factors that a landlord can manage in order to reduce turnover costs. This starts with a great property in rent-ready condition, proper screening, fair rent prices, offering amenities, responding to requests and maintaining the property. While 82% of tenants are looking for access to a community fitness center, a higher 94% are looking for high-speed internet. How does your property and management of that property compare?
Reflect about the long-term investment that will eventually pay off the next time your property is vacant, and think of it as a fresh start. Or if you’ve already found your #1 tenants, be sure to take action to keep them.
Transunion Smartmove has created a visual look into these considerations that are most valued in avoiding costly turnovers.