The True Cost of “Turnover” for Utah Rental Property Owners

The True Cost of “Turnover” for Utah Rental Property Owners

Utah Rental Property Turnover by the Numbers

Compiling statistics for Utah rental properties helps us establish a baseline for what is considered typical within the local property management industry. Some of the most surprising statistics have to do with tenant turnover. Make sure the Utah property management company you choose understands how these metrics affect your rental property’s performance and what steps can be taken to reduce your turnover expenses.

 

25 – Average time in days to finish an eviction in Utah.

30 – Percent of people who move in the six months from October through March.

50 – Percentage of renters at least two weeks behind in rent who never catch back up.

78 – Percentage of Utah multi-family rental properties that turnover each year.

772 – Average national cost in dollars to get a unit rent ready. This includes things like carpet cleaning, landscaping, drywall repair, professional cleaning, painting, etc.

2500 – 3500 – Average total cost in dollars of a tenant turnover.

 

There are two important facts to take away from this data. The first is the true cost of placing a bad tenant. If a bad tenant falls two weeks behind on rent, you have a one in two chance of needing an eviction. This eviction will take an average of 25 days to complete costing you nearly a full month’s worth of rent. Once you finally complete the eviction, and assuming your tenant did no damage to your rental, you will need to pay nearly $800 dollars just to get it ready to rent again. To make matters worse, if this turnover happens to occur in the winter, only 30% of tenants are looking to move at that time of year and it will likely take you some time to find a new tenant. The sad truth is your total loss could well exceed the average of $2,500-$3,500.

The second thing you should remember is that 70% of turnover is avoidable! That’s right, nearly three in four tenants move into another rental when they leave yours. So what’s the reason for this? Often times, poor management is to blame. Don’t let your rental become just another statistic, and hire a Utah property manager who understands how to implement a effective resident retention program and help reduce your turnover.

 

Want to learn how we minimize turnover in our rentals? Download our owner information packet for answers to these and other important questions.