function calculateTurnover() {
// Get input values
var totalUnits = parseFloat(document.getElementById('ttr-total-units').value);
var moveOuts = parseFloat(document.getElementById('ttr-move-outs').value);
var avgCost = parseFloat(document.getElementById('ttr-avg-cost').value);
// Validate inputs
if (isNaN(totalUnits) || totalUnits <= 0) {
alert("Please enter a valid total number of units (greater than 0).");
return;
}
if (isNaN(moveOuts) || moveOuts < 0) {
alert("Please enter a valid number of move-outs.");
return;
}
// Default cost to 0 if empty
if (isNaN(avgCost)) {
avgCost = 0;
}
// Calculations
var turnoverRate = (moveOuts / totalUnits) * 100;
var retentionRate = 100 – turnoverRate;
var totalCost = moveOuts * avgCost;
// Handle edge case where move-outs exceed units (unlikely but possible in turnover logic if same unit turns twice)
// We will still display the raw percentage as it indicates high instability
// Update DOM
document.getElementById('ttr-rate-result').innerText = turnoverRate.toFixed(2) + "%";
document.getElementById('ttr-retention-result').innerText = retentionRate.toFixed(2) + "%";
document.getElementById('ttr-cost-result').innerText = "$" + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Show results div
document.getElementById('ttr-results').style.display = 'block';
}
Understanding Tenant Turnover Rate
Tenant turnover rate is a critical Key Performance Indicator (KPI) for property managers, landlords, and real estate investors. It measures the percentage of tenants who vacate a property over a specific period, typically one year. A high turnover rate can signal dissatisfaction with management, maintenance issues, or uncompetitive rental pricing, while a low rate generally indicates a stable and profitable property.
How to Calculate Tenant Turnover
The formula for calculating tenant turnover is relatively straightforward. It compares the number of tenants who have moved out against the total number of units available.
Formula: (Number of Move-Outs / Total Number of Units) × 100
For example, if you manage a complex with 50 units and 10 tenants moved out in the last 12 months, your calculation would be:
(10 / 50) = 0.20
0.20 × 100 = 20% Turnover Rate
Why This Metric Matters
Turnover is one of the largest expenses in rental property management. Calculating the rate helps you understand your operational efficiency and financial health. The costs associated with turnover include:
Vacancy Loss: Rent not collected while the unit sits empty.
Maintenance & Repairs: Painting, cleaning, and fixing wear and tear to make the unit "rent-ready."
Administrative Time: Staff hours spent processing lease terminations and new applications.
Interpreting Your Results
While industry averages vary by location and property type, a turnover rate between 45% and 50% is often cited as the national average for multifamily properties in the US. However, single-family homes typically see lower rates (around 20-30%).
High Rate (>50%): May indicate issues with property maintenance, tenant screening, or rent pricing. It suggests a need to focus on tenant retention strategies.
Low Rate (<20%): Indicates strong tenant satisfaction. However, if it is extremely low, check if your rents are significantly below market value.
Tips to Reduce Tenant Turnover
Improving your retention rate directly boosts Net Operating Income (NOI). Consider these strategies:
Responsive Maintenance: Address repair requests quickly and professionally.
Communication: Maintain open lines of communication and check in with tenants before lease renewal.
Fair Pricing: Implement reasonable rent increases that reflect the market without shocking current residents.
Amenities: Upgrade units or offer amenities that encourage long-term residency.