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Turnover Cost

The expenses incurred when a tenant moves out and a new tenant must be found and placed.

Definition

Turnover cost is the total expense of replacing a tenant — cleaning, repairs, painting, advertising, lost rent during vacancy, and tenant screening. Turnover is one of the biggest hidden costs of rental ownership, often equaling 1-2 months of rent per turnover. Reducing turnover by keeping good tenants is one of the highest-ROI things a landlord can do.

Example

A tenant moves out of your $1,800/month rental. You spend $400 on cleaning, $600 on minor repairs and paint, $200 on advertising, and the unit sits vacant for 3 weeks before a new tenant moves in (lost rent: $1,260). Total turnover cost: $2,460 — about 1.4 months of rent.

How Richify Helps With Turnover Cost

Richify automatically calculates turnover cost and other key real estate metrics for every property in your portfolio. Instead of plugging numbers into spreadsheets, you get instant analysis with built-in AI-powered insights to help you spot trends and opportunities across your holdings.

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