Understanding Turnover Expenses

When a tenant moves out, landlords must prepare the unit for the next occupant. Beyond basic cleaning, there may be painting, repairs, and advertising fees. Most costly of all is the lost rent while the apartment sits vacant. To forecast these expenses, you can use the following MathML formula:

Here represents cleaning, advertising, repairs, vacancy days, and the daily rent lost. Add these numbers to reveal the real cost of turnover.

The Impact of Longer Vacancies

Each day a unit sits empty is revenue you cannot recapture. In competitive markets, advertising aggressively and turning the property quickly is essential. If you typically require two weeks between tenants, doubling that time effectively doubles your vacancy costs, even if cleaning and repair expenses stay fixed.

Example Cost Breakdown

Expense	Amount
Cleaning	$150
Advertising	$80
Repairs	$300
Vacancy (10 days @ $40)	$400

In this scenario the turnover cost adds up to $930. Monitoring these figures helps property managers price rents appropriately and plan budgets for maintenance or upgrades.