Calculation: Turnover Rate = (Number of Tenants Moved Out / Total Number of Tenants) * 100%
What is the Definition & Importance of ´Tenant Turnover´:
This real estate KPI informs you at what rate your tenants are leaving, and will typically be calculated on an annual basis.
Our hotel management company highly suggests knowing the tenant turnover rate will help you gain insight into which of your projects has a more stable tenant cycle. The lower the turnover rate the better since:
- Money is lost in between owners due to missed rental income
- Cost involved in finding a new tenant
Make sure to keep an eye on this metric as any fluctuations can give insight into any issues or opportunities for your investment project.
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