The Real Cost of Tenant Turnover and How We Eliminate It

[James Jones]

Most investors only look at rent minus mortgage and call it “cash flow.” Then a tenant moves out and suddenly the numbers stop making sense. Turnover is the silent profit killer in this business, especially for small landlords who never calculate the true cost.

Here’s what turnover actually costs:

1. Lost rent.

Even in a good market, you’re losing at least 30–60 days of rent. For us, that’s easily $1,200 to $2,500 gone.

2. Turn-ready repairs.

Paint, cleaning, patchwork, minor plumbing, broken blinds, damaged floors, it adds up fast. A typical turn can run $1,000 to $3,000 depending on age and finishes.

3. Leasing + inspection delays.

New photos, new listing, showings, screening, MHA inspection, approval, more lost days. Time burns cash.

4. Make-ready labor + materials.

Vendors don’t work for free. Even standardized materials cost money. If you’re not systemized, this expense balloons.

When you add it up, a single turnover can quietly cost $4,000 to $7,000.

Most landlords don’t even realize they burned a year of “cash flow” replacing a tenant.

Here’s how we eliminate turnover across our Section 8 portfolio:

1. We rehab for durability, not beauty.

Tile floors. Simple finishes. One paint color. Durable materials eliminate 80 percent of turn-related repairs.

2. We add bedrooms when possible.

More bedrooms equals higher voucher rent equals longer stays. Families with stable assistance rarely move unless they have to.

3. We build great relationships with tenants.

Clarity, speed, and respect. We communicate, we respond, and we solve issues before they escalate. People stay where they feel stable.

4. We treat inspections like free maintenance audits.

Every passed inspection extends the tenant’s timeline. Preventive maintenance beats reactive repairs.

5. We work with reliable vendors who know our standards.

Consistency keeps tenant satisfaction high and unexpected breakdowns low.

6. We choose the right tenant from the start.

Good screening is the cheapest insurance policy you’ll ever buy.

Turnovers are avoidable when you build the property for longevity and operate it like a business.

Our highest-performing rentals aren’t the prettiest, they’re the ones that stay occupied for years without surprises.

What’s your average turnover cost, and are you calculating all the hidden pieces?

[Mark Cruse]

This is an awesome post. I always practice every point mentioned here. Also, others have submitted great responses. People can really maximize their businesses by listening to them. All are crucial points, but one of my top is getting the right tenant and building a great relationship. I know there are people in this forum that show the tenants zero respect and others claim, all tenants hate landlords. They need to speak for themselves. In essence, keeping a great tenant there as long as you can is how you win. This approach works for an of the class assets.

Great topic