What are you seeing in turnover for 1/1 vs 2 and 3 bedroom units?

5 Replies

I’ve been looking at some apartment deals and for some reason 1/1 units aren’t as attractIve to me as 2 & 3 bedroom units. One reason obviously beIng that you get more rent for more bedrooms. But in regards to turnover, what are you guys seeing? Are 1/1s getting more turnover than 2 & 3 bedrooms?

@Mitchell Pollard I feel that 1/1s have more of a transient tenant base. It really all depends of the demographics in the area as well. Such as the avg persons per household. 1/1s can be profitable as well, but you have to make sure the demographic matches up to the unit mix for that area. Hopefully this makes sense

@Tj Hines I get that. I was wondering if there were statistics on the turnover ratio. Or if anyone who owns a number of apartments could give some trends from experience. But certainly I get that demographics and location matter.
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@Mitchell Pollard statistics and trends will be different from market to market for sure. Get with a localized PM that specialize in that submarket of knowing trends and statistics regarding turnover. Costar delivers this data as well. Just costly as hell. Good luck on your journey my friend

@Mitchell Pollard - There are other variables to consider besides demographics.  For instance 1 beds may turn over more often, but they may have lower make ready costs because of the sqft and tenant mix (children and associated repairs not as likely).  2 and 3 beds may bring higher rents (maybe not on sqft basis) but they will often have at least one additional bathroom and the associated costs.  Also with more people in a unit, you generally have more wear and tear.