Average Turn Costs Killing Profit

[Allen Tracy]

I'm curious what everyone is seeing for average turn costs and average amount of time tenants are staying in units.

For C class multi family in Columbus, OH I've been seeing tenants stay around 2 years with an average turn of $2,000.

I spoke to a PM who manages 3,000 doors in Columbus and he said on average for C class properties he's seeing tenants move every 1.5 years.  An agent in the area said about 2 years for multifamily in B and A neighborhoods and 3 years for B and A single family.

The PM said he can't believe the turn costs now but both material and labor prices are way up.

When running properties through the calculator I now add $100/mo for turn costs on top of vacancy/repairs/capex.

[Russell Brazil]

You partly here illustrate why the lower class properties with higher cap rates actually under perform the higher class properties with lower cap rates in reality. Life doesnt happen like a spreadsheet or formula.

My turnover costs for my A class properties, in a very expensive market are just a few hundred dollars. Maid service and a little paint touch up here and there. That is it.