The Tenant Turnover Test: What Will This Property Cost Every Time Someone Moves Out?
When evaluating a rental property, investors naturally focus on the purchase price, expected rent, financing, taxes, insurance, and ongoing maintenance. But there is another expense that may not appear neatly in the initial numbers: what happens financially every time a tenant moves out. Tenant turnover is more than finding another renter. It can create a combination of expenses that quickly affect a property's overall performance. Start With the Empty Days Even a desirable rental may sit vacant between tenants. There may be time needed for cleaning, repairs, inspections, marketing, showings, screening, and preparing the property for the next occupant. If…
