Renting & managementAll terms starting with T
Turnover
Also called: unit turn, make ready
The work and vacancy between one tenancy and the next: cleaning, repairs, marketing, and re-leasing.
Turnover combines direct cost (cleaning, paint, repairs, marketing) with the vacancy loss while the unit is off the market. It is one of the largest controllable costs in rental ownership.
Because turnover is expensive, retaining a reliable tenant at a slightly below-market rent is often better economics than pushing for the maximum and re-leasing.
Related terms
- Vacancy rateThe share of time or units sitting empty, budgeted as a reduction to expected rental income.
- Operating expensesThe recurring costs of running a property: taxes, insurance, management, maintenance, and owner-paid utilities.
- Rent-readyThe condition a unit must reach before it can be marketed: clean, functional, safe, and legal to occupy.
- Cash flowWhat remains each month after rent has covered operating expenses and debt service.
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