How to use the tenant turnover cost calculator
- Enter the monthly rent and the number of days the unit sits empty between tenants.
- Enter what you spend on cleaning, repairs and paint, listing and showings, leasing or screening fees, and any move-in concession.
- Open the advanced options and enter the chance that the tenant leaves if you make no offer to stay, if you want a break-even renewal incentive.
- Read the cost of one turnover in dollars and in months of rent, and see which line is the biggest.
Formula
lost rent = monthly rent x vacant days / (365 / 12)
cost of one turnover = lost rent + cleaning + repairs + listing + fees + concession
break-even renewal incentive = cost of one turnover x chance of leaving
Dividing by 365 / 12 (about 30.4167) converts days to a fraction of an average month. The incentive is the most an offer is worth if it would keep, with certainty, a tenant who would otherwise leave with the chance you entered.
A $1,800 unit vacant for 28 days
Rent is $1,800 and the unit sits empty for 28 days, so lost rent is 1,800 x 28 / 30.4167 = $1,656.99. Add $250 of cleaning, $900 of repairs and paint, $150 of listing costs and $400 of leasing fees, and the cost of one turnover is $3,356.99, or 1.86 months of rent.
If you think there is a 35 percent chance the tenant leaves without an offer, avoiding the move-out is worth 35 percent of $3,356.99, which is $1,174.95. An incentive larger than that costs more than the turnover it is expected to prevent.
Lost rent is usually the biggest line
Every day a unit stays empty costs a day of rent, and a few weeks of vacancy can cost more than the cleaning and repairs together. That is why the table shows each line's share of the total. Cutting the number of empty days, by showing the unit before the old tenant leaves, often matters more than cutting any single expense.
Using the break-even incentive
A renewal offer, such as a lower increase or a small credit, is worth making when it costs less than the turnover it avoids. The break-even figure is a ceiling, not a target. It assumes the offer fully removes the chance of leaving, so a weaker offer is worth less. Compare it with the effect of a rent change in the Rent Increase Calculator.
For the bigger picture of whether to rent a home out at all, see the Sell vs Rent Out Home Calculator. For turnover in a workplace rather than a rental, there is the Employee Turnover Calculator.
Assumptions and limits
- All costs are figures you enter in dollars for one turnover. The page does not estimate them.
- Vacant days are whole days with no rent coming in. Partial months of rent are handled by the days-to-month conversion.
- The chance of leaving is your own estimate, and the incentive assumes the offer removes it completely.
- Rent control, notice rules, security deposits and legal costs are not modeled.
- Nothing typed here leaves your browser.
Frequently asked questions
Why divide by 365 over 12 instead of 30?
An average month has about 30.4167 days, so using it keeps a full year of vacant days equal to a full year of rent. Using 30 would overstate the lost rent by a little.
What counts as a move-in concession?
Any discount or free time you gave the new tenant, such as a free week or a lower first month. Enter the dollar value as a cost of this turnover.
Does the break-even incentive mean I should offer it?
No. It is the most an offer could be worth under the assumptions you typed. A smaller offer that works is better, and one that does not change the tenant's mind is worth nothing.
Should I include the deposit?
A security deposit is the tenant's money, held against damage, so it is not a cost unless you keep part of it for repairs. If you do, lower the repairs line by that amount.