How to Navigate Tenant Turnover in Multifamily Units

24 January 2025

Tenant turnover in multifamily units is like the changing of seasons—inevitable, but manageable with the right approach. Sure, it might feel overwhelming at times, especially when you’re juggling maintenance, marketing, and finding new tenants all at once. But don’t sweat it. With the right strategies, you can reduce vacancy periods, keep costs under control, and ensure a smooth transition between tenants.

In this article, we’ll break down everything you need to know to handle tenant turnover like a pro. We’ll talk about common challenges, proactive steps you can take, and how to simplify the process while keeping your bottom line happy. So, let’s dive in!

What Is Tenant Turnover, and Why Does It Matter?

First things first: What exactly is tenant turnover? Simply put, tenant turnover happens when a renter moves out of your unit, leaving you the task of finding someone new to take their place.

Why does it matter? Well, tenant turnover comes with costs—both literal and figurative. You've got to account for lost rental income, marketing expenses, cleaning and repairs, and most importantly, your time. The longer your unit sits vacant, the more money you lose. Nobody wants that, right?

But here’s the good news: Tenant turnover, while inevitable, isn’t a death sentence for your profits. If you tackle it strategically, you can minimize vacancies and keep your property running like a well-oiled machine.

The Common Challenges of Tenant Turnover

Let’s be real—navigating tenant turnover isn’t always a walk in the park. There are plenty of challenges that come with it. Here are some of the most common ones:

1. High Vacancy Costs

Every day your unit sits empty is a day you aren’t collecting rent. And when you’re in the multifamily rental business, even small gaps between tenants can add up quickly.

2. Time-Consuming Process

Tenant turnover can eat up a lot of your time. From coordinating move-out inspections to cleaning, repairing, and marketing the unit, there's a lot to juggle. It's like spinning plates—one wrong move, and everything comes crashing down.

3. Finding the Right Tenants

Let’s face it: Not all tenants are created equal. Screening potential renters to find ones who will pay on time and treat your property well can be daunting. But rushing the process? That usually leads to bigger headaches later.

4. Wear and Tear on the Unit

When tenants move out, they don’t always leave the place in pristine condition. Scratches on the walls, dents in appliances, and mystery stains on the carpet—it’s all part of the game. But these repairs can quickly snowball into unexpected expenses.

Strategies to Streamline Tenant Turnover

Now that we’ve covered the challenges, let’s move on to the solutions. Below are some tried-and-true strategies to help you navigate tenant turnover in multifamily units without losing your sanity.

1. Build Strong Relationships With Tenants

Think of your relationship with tenants as a partnership. The goal? Keep them happy so they’re more likely to stick around. Communicate clearly, respond to maintenance requests quickly, and treat your tenants with respect. Happy tenants are less likely to move out—simple as that!

2. Start Marketing Before the Lease Ends

Don’t wait until your current tenant has moved out to start looking for a new one. Instead, ask your existing tenant about their plans at least 60 days before their lease ends. If they’re planning to leave, you can start marketing the unit early.

Pro tip: Offer to show the unit while the current tenant is still living there (with their permission, of course). This will reduce the vacancy period and help you secure a new tenant faster.

3. Conduct Thorough Move-Out Inspections

When a tenant moves out, do a detailed walk-through of the unit. Check for any damage beyond normal wear and tear, document it with photos, and make note of repairs that need to be tackled. This is also the perfect time to ensure the property is cleaned and ready for showings.

4. Streamline the Cleaning and Maintenance Process

Let’s be honest—no one likes scrubbing ovens or patching drywall. But a clean, well-maintained unit is crucial for attracting quality tenants. Create a checklist of tasks to tackle after each tenant moves out, or consider hiring a professional cleaning and maintenance team to handle the heavy lifting for you.

5. Price Your Unit Competitively

If your rental price is too high, you’ll scare off potential tenants. If it’s too low, you’ll leave money on the table. Do your homework: Check comparable properties in your area and price your unit competitively to attract high-quality renters.

6. Screen Potential Tenants Thoroughly

A little extra effort during the tenant screening process can save you a ton of headaches down the road. Run credit checks, verify income, and get references from previous landlords. Don’t be afraid to ask questions—this is your chance to get to know potential renters and ensure they’re a good fit.

7. Leverage Technology

From online rental applications to virtual tours, technology can make tenant turnover less of a hassle. Use property management software to streamline the entire process—from marketing your unit to screening tenants and signing leases electronically. Think of it as having an assistant that never takes a day off.

Tips for Minimizing Tenant Turnover

Wouldn’t it be great if you could avoid tenant turnover altogether? While it’s not entirely possible, there are ways to minimize it. Here’s how:

1. Keep Rent Increases Reasonable

Yes, you want to keep up with the market, but sudden, steep rent hikes are a surefire way to push good tenants out the door. Instead, aim for small, incremental increases to keep things fair and manageable.

2. Offer Long-Term Lease Options

Some tenants prefer the stability of a long-term lease. Offering a 2- or 3-year lease (with reasonable renewal terms) can encourage them to stay longer and reduce turnover.

3. Address Maintenance Issues Promptly

Nothing frustrates tenants more than feeling ignored. If they report a leaky faucet or a broken stove, make it a priority to fix it quickly. This shows you care about their comfort and wellbeing, which goes a long way in retaining tenants.

4. Foster a Sense of Community

People are more likely to stay in a place where they feel at home. Consider hosting tenant appreciation events or creating common spaces where tenants can connect. A little effort here can make a big difference.

The Bottom Line

Tenant turnover in multifamily units may seem like a headache, but it’s absolutely manageable with the right strategies in place. By building positive relationships with your tenants, streamlining your turnover processes, and proactively addressing issues, you can reduce vacancy periods, save money, and keep things running smoothly.

Think of it this way: Tenant turnover is just part of the journey as a property owner. And like any journey, it gets easier when you have a solid map (or in this case, a strategy). So, roll up your sleeves, implement these tips, and watch your multifamily property thrive.