Triplex vacancy/turnover rates

2 Replies

Do you notice a high turnover rate with your triplexes? I was considering purchasing one but was told turnover is very high.

What's been your experience?

I have 3 triplexes. I haven't noticed that turnover is that high or anything. It is true, however, that turnover is always higher in multifamily housing because nobody sees a duplex or apartment in a building as their long term home. SFRs will hold people much much longer because they can make it their home and own it. It feels like they've arrive, sort of thing. Think about the people you've known who have rented apartments over the years. How many of them are still renting the same apartments? I would bet very few. Most of them have probably bought a house, or moved to a house to rent, or heck, moved to a different apartment that was nicer or closer to an area they like, etc.

To sum, I would say you are looking at a drop in the bucket when it comes to running numbers on a triplex. Maybe people vacate more often, but there are 1000 other factors that weigh in much heavier than that. For one, you only have one roof to replace every 20 years, there's one lawn to mow, your tenants are all in one place which is easier for vendors, etc. The list goes on. Triplexes print money!

Turnover tends to be higher in apartments than houses but it doesn't matter if it's a triplex, fourplex, or 16-plex. The lower quality or lower the rent, the higher turnover tends to be. Renters are typically low-level employees with less stability in their employment, fewer familial ties, etc.