Includes cleaning, repairs, marketing, and lost rent.
Turnover Rate
0%
Annual Turnover Cost
$0
Understanding Apartment Turnover Rate
Apartment turnover rate is a critical KPI (Key Performance Indicator) for property managers and real estate investors. It represents the percentage of rental units that become vacant and are re-leased within a specific timeframe—usually one year. High turnover rates often signal tenant dissatisfaction, uncompetitive pricing, or management issues, while a healthy turnover rate suggests a stable community.
How to Calculate Turnover Rate for Apartments
The math behind turnover is straightforward but powerful. To find your annual turnover rate, use the following formula:
Turnover Rate = (Total Move-outs during Period ÷ Total Number of Units) × 100
Example Calculation
Suppose you manage an apartment complex with 150 units. Over the course of 12 months, 45 tenants move out and are replaced by new residents.
Step 1: Identify Move-outs (45)
Step 2: Identify Total Units (150)
Step 3: Divide 45 by 150 = 0.30
Step 4: Multiply by 100 = 30% Turnover Rate
The Hidden Cost of High Turnover
Calculating the rate is only half the battle; understanding the financial impact is where management decisions are made. Every time a tenant moves out, you face expenses including:
Marketing Costs: Listing fees and advertising.
Maintenance: Repainting, carpet cleaning, and repairs.
Vacancy Loss: The rent lost while the unit sits empty.
Staff Time: Hours spent showing units and processing applications.
Industry standards suggest that the average cost of a single turnover can range from $1,000 to $5,000 depending on the market and unit size. Reducing your rate by just 5% can save a property thousands of dollars annually.
function calculateTurnover() {
var totalUnits = parseFloat(document.getElementById("totalUnits").value);
var moveOuts = parseFloat(document.getElementById("moveOuts").value);
var costPerTurn = parseFloat(document.getElementById("costPerTurn").value);
var resultsDiv = document.getElementById("turnover-results");
var rateOutput = document.getElementById("rateOutput");
var costOutput = document.getElementById("costOutput");
var interpretation = document.getElementById("interpretation");
if (isNaN(totalUnits) || isNaN(moveOuts) || totalUnits <= 0) {
alert("Please enter valid numbers. Total units must be greater than zero.");
return;
}
// Calculate Rate
var turnoverRate = (moveOuts / totalUnits) * 100;
// Calculate Cost (default to 0 if not provided)
var totalCost = 0;
if (!isNaN(costPerTurn)) {
totalCost = moveOuts * costPerTurn;
}
// Display results
resultsDiv.style.display = "block";
rateOutput.innerHTML = turnoverRate.toFixed(1) + "%";
costOutput.innerHTML = "$" + totalCost.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
// Provide Contextual Advice
var message = "";
if (turnoverRate < 20) {
message = "Excellent Stability: Your turnover rate is below the national average. Focus on maintaining current resident satisfaction.";
} else if (turnoverRate >= 20 && turnoverRate <= 45) {
message = "Healthy Range: Your turnover is within the industry standard (approx. 35-45% for multifamily). Review move-out surveys for minor improvements.";
} else {
message = "High Turnover Alert: Your rate is significantly high. Consider reviewing lease renewal incentives, property maintenance speed, or market rent competitiveness.";
}
interpretation.innerHTML = message;
}