Turnover rate measures the percentage of units in a rental property whose residents move out over a given period, most commonly expressed as an annual figure. A property with a 50 percent annual turnover rate, for example, will see roughly half of its units vacated and re-leased to new tenants over the course of a year. Turnover is driven by a mix of factors, including lease terms, rent increases, local job and housing market conditions, and how well a property is managed and maintained.
Turnover carries real costs for owners, since every vacated unit typically requires cleaning, minor repairs or renovation, marketing, and a period of lost rent before a new tenant moves in. Lower turnover generally supports stronger net operating income, since fewer units sit vacant or require reinvestment in a given year. Because of this direct link to profitability, turnover rate is one of the operating metrics investors and property managers monitor most closely, often alongside renewal rate, when assessing how well a property is performing.
Further reading: Multifamily Investing in 2026: Why Selectivity Matters More Than Ever
ACCESS
