Tenant Turnover Rate: How to Calculate It and What's Normal
Your tenant turnover rate is the share of your tenants who move out over a set period, usually one year. To find it, divide the number of move-outs by the total number of units, then multiply by 100. If 3 of your 10 rentals changed tenants this year, your rate is 30%. National apartment averages have hovered near 50% for years, but a small landlord’s number swings widely, so the useful question is what your rate costs you and what is driving it.
TL;DR
Turnover rate = move-outs ÷ total units × 100, measured over 12 months.
The National Apartment Association (NAA) reported an average apartment turnover of 46.8% in its 2019 survey, and some large landlords have recently reported rates near 30%.
Every move-out carries vacancy, make-ready and leasing costs. NAA conservatively put the average at $1,800 per move-out.
Most turnover traces back to a handful of causes you can influence: maintenance response, communication, rent pricing and a slow turn process.
Track the rate by property, not just in total. One chronic problem unit can hide behind a healthy portfolio average.
Table of Contents
What the tenant turnover rate measures
The tenant turnover rate is the percentage of existing occupants at a property who vacate their units at the end of their lease terms, as Wall Street Prep defines it. Industry guidance from the National Council of Housing Market Analysts treats it the same way: a measure of how many units or occupants change over a specific period, typically a year.
Think of it as a retention scorecard. A low rate means tenants like the home, the price and the way it is managed. A high rate means money is leaking out through empty units, repairs and marketing. Like judging a car on horsepower alone, looking at rent rolls without turnover gives you a picture that is accurate but incomplete.
How to calculate your tenant turnover rate
The formula is simple. The standard period is one year, which lines up with the typical 12-month lease.
Turnover rate = (move-outs during the year ÷ total units) × 100
Follow these steps:
Pick a 12-month window, such as the calendar year.
Count the units where the tenant moved out during that window. Count each move-out, even if the same unit turned twice.
Divide by the total number of rentable units you owned or managed.
Multiply by 100.
Worked examples
Portfolio | Units | Move-outs in 12 months | Turnover rate |
Duplex and two single-family homes | 4 | 1 | 25% |
Six single-family rentals | 6 | 2 | 33% |
Small multifamily building | 20 | 9 | 45% |
Condo and townhome portfolio | 40 | 14 | 35% |
Notice what happens with small portfolios. One move-out among four units moves your rate by 25 points. That is why a single-family investor should look at the rate over two or three years, not just one, before drawing conclusions.
Common calculation mistakes
Mixing denominators. Use total units, not occupied units, or your rate will look worse in a year with vacancies.
Ignoring mid-lease move-outs. Early terminations and evictions are turnover too. They are often the most expensive kind.
Counting lease renewals as turnover. A tenant who signs a new lease and stays in the unit did not turn over.
Averaging unlike properties. Mixing a student-heavy building with a family neighborhood blurs the signal.
What a 20% turnover rate means
A 20% rate means one in five units was vacated by its resident during the year. Treat it as a baseline, not a verdict. Higher rates may signal problems with property condition, pricing or management, while lower rates generally reflect stronger retention, according to Wall Street Prep.
At 20%, an average tenant stays about five years. At 50%, the average stay is two years. For a landlord with 10 units, that is the difference between two turns a year and five.
What is a typical tenant turnover rate in the US?
The most cited benchmark comes from the NAA, which reported that apartment turnover averaged 46.8% in 2019. That survey is conventional apartments, so use it as a reference point, not a target for a three-unit single-family portfolio.
Recent market conditions have pushed many operators lower. CNBC reported that some large landlords saw turnover as low as 30%, well under the historical norm of around 50%. The drivers were high moving costs and a for-sale market many renters cannot afford. Analysts quoted there see those structural shifts supporting renewal rates and landlord cash flow by cutting recurring turnover costs.
Property type matters too. The NCHMA guidance notes that student and transient-heavy communities usually turn over more than conventional long-term apartment complexes. The NAA material also points out that specialized housing, such as military and student housing, can see significant numbers of turnovers.
So compare yourself to the right peers:
Single-family and small multifamily: compare to your own history first, then to similar homes in your submarket.
Garden apartments: the NAA figure is a fair starting point.
Student or military-adjacent rentals: expect higher numbers and plan your leasing calendar around them.
Why tenants move out
Turnover is rarely random. Surveys of renters point to a consistent set of reasons. The IREM 2024 renter trends review lists seeking a better home, lower rent or a different community, wanting their own place, moving closer to family, and job or family-status changes. The NAA’s resident retention research adds buying a home, rent pricing, safety concerns, and dissatisfaction with maintenance or management communication.
Sort those into two buckets:
Causes you cannot control: job relocations, marriage, a new baby, a move to be near family, a home purchase.
Causes you can influence: slow repairs, poor communication, rent increases that jump past the market, a property that feels neglected, and unresolved neighbor or safety concerns.
The second bucket is where your effort pays off. Renters in the IREM material said they renewed because they liked their unit, their manager or landlord, the community and the amenities, and because rent elsewhere would be higher. Two of those are entirely about how you operate.
What each turnover really costs
The NAA conservatively calculated the average cost of a single apartment move-out at $1,800. That covers make-ready work and related costs, and it is a floor. Your real figure depends on the condition the tenant leaves, your rent level and how long the unit sits empty.
Build your own number from these pieces:
Lost rent while vacant. Days empty × daily rent.
Make-ready. Cleaning, paint, flooring, repairs beyond the security deposit.
Leasing costs. Photos, advertising, showings and screening time.
Utilities and carrying costs during the vacancy.
Concessions you offer to fill the unit faster.
Here is a simple example. A $2,000-per-month home sits empty for 30 days, needs $1,500 in paint and flooring, and $400 in marketing and cleaning. That is $2,000 + $1,500 + $400 = $3,900 for one turn, more than double the NAA baseline. Multiply by two turns a year on a six-home portfolio and the number becomes impossible to ignore.
Bad move-outs run higher. We broke down one in detail in a $14,150 rental turnover, and it shows how skipped inspections and delays compound.
The days you control
Vacancy days are the most controllable line item. The NAA material notes that many companies use seven working days as an average guideline for turning a unit, and management groups often expect five, sometimes three. Slow turns usually come from scheduling gaps and doing tasks one after another instead of in parallel. Order the paint crew, cleaners and flooring installer on a single schedule before the tenant even hands in keys, and you remove most of the idle time.
Standardizing your scope of work at move-out inspection helps too. When every unit is inspected against the same checklist, you can compare costs between similar homes and spot a vendor who is charging too much.
How to reduce your tenant turnover rate
You cannot stop every move-out. You can stop the preventable ones. Start here.
1. Respond to maintenance fast
Communication and maintenance are among the most consistent retention levers in the renter research. A tenant who waits two weeks for a leaking faucet starts shopping for a new place. Set a response standard, such as same-day acknowledgment and a scheduled visit within a few days for non-emergencies, and keep vendors accountable. Our guide to vendor management for rental property owners covers how to build that bench.
2. Start the renewal conversation early
Do not wait for the lease to end. Reach out well ahead of the expiration date, confirm the tenant’s plans, and present a renewal offer. We lay out the full sequence in our lease renewal playbook.
3. Price renewals against the real cost of turning
If a turn costs you $3,900, a $75 monthly increase that pushes a good tenant out is a bad trade. Compare the increase over 12 months ($900) to the cost of a vacancy. Often a modest, market-aware bump keeps a reliable tenant and your cash flow stronger.
4. Screen for fit, not just income
A tenant who qualifies on paper but plans to leave in eight months still costs you. Verify income, rental history and stability, and be honest in the listing about lease terms, pet rules and maintenance expectations so the tenant knows what they signed up for.
5. Set the tone in the first month
The early weeks shape whether a tenant renews. A clean move-in, documented condition and a clear point of contact reduce disputes later. See why the first 30 days decide rental success.
6. Keep the property feeling cared for
Small, regular investments such as seasonal inspections, landscaping and prompt fixes tell tenants the owner is paying attention. Our post on reducing rental property turnover costs walks through the cost side in more detail.
When a unit keeps churning
Sometimes one property drags the average. Maybe it needs more capital than it earns, sits in a submarket where tenants leave quickly, or has a layout that never rents well. Track turnover per property for two or three years. If one home keeps turning despite good management, decide whether to renovate, reposition the rent or sell. Owners weighing a sale often look at an off-market property buyer list alongside traditional listings to compare how quickly and under what conditions they can exit.
A simple tracking routine
You do not need software to start. A spreadsheet works.
One row per unit, with lease start and end dates.
A column for move-out date, reason given and days vacant.
A column for make-ready cost and leasing cost.
A yearly summary: turnover rate, average vacancy days, average cost per turn.
Review it each January. Over time you will see patterns: a certain street, a certain lease start month, a certain vendor. Patterns are what turn a metric into a decision. Our overview of protecting rental cash flow shows where turnover fits among the other numbers that drive returns.
Our perspective
We manage rentals as investors, so we look at turnover the way an owner does: as a line on the income statement, not a nuisance. A low rate on its own proves little. What matters is whether you are keeping the right tenants at the right rent, and whether each turn is fast, documented and priced correctly. Our approach starts with compliance and risk mitigation, then builds a custom management process around your strategy, whether that is a BRRRR portfolio, a few single-family rentals or a Section 8 property. We coordinate maintenance and oversee vendors and subcontractors so repairs get done on a schedule, which is one of the most practical ways to protect tenant satisfaction and shorten vacancy. As a veteran-owned team serving New Jersey investors, we believe disciplined systems beat heroics. Measure turnover, understand the cause, and manage to a standard. That is how cash flow becomes predictable. Main
Let us handle turnover with you
If you own rentals in Southern New Jersey or the surrounding suburbs and would rather not manage every move-out yourself, we can help. Our services cover tenant screening, leasing, rent collection, maintenance coordination and vendor oversight, built around your investment goals. We also manage condo and HOA associations.
See how residential and association management with 2nd Street Property Management can fit your portfolio.
FAQ
What is a good tenant turnover rate?
There is no single answer, because it depends on property type and market. The NAA reported an average apartment turnover of 46.8% in 2019, and some large landlords have recently seen rates near 30%. Aim to beat the norm for comparable properties in your area, and compare yourself to your own history year over year.
What does 20% turnover mean?
It means 20% of your units were vacated during the year, so about one in five. That is generally a sign of solid retention, since the average tenant would stay roughly five years. Check whether those move-outs were preventable before deciding whether anything needs to change.
How do I calculate tenant turnover rate for a few rentals?
Divide the number of move-outs by your total units over 12 months, then multiply by 100. With only a handful of units, one move-out shifts the percentage a lot. Look at a two- or three-year average for a clearer picture.
How much does one tenant turnover cost?
NAA conservatively calculated the average cost of one move-out at $1,800. Your total will be higher once you add lost rent from vacancy, leasing costs and heavier repairs. Add up your own invoices and vacancy days to find your real number.
Does a high turnover rate always mean I’m doing something wrong?
Not always. Student or transient-heavy housing naturally turns over more than long-term family rentals, and life changes like job moves are outside your control. A high rate becomes a concern when the reasons are fixable, such as slow repairs, weak communication or pricing out good tenants.
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