The Real Cost of Resident Turnover in Multifamily Housing

When it comes to multifamily asset performance, many owners focus on big-picture metrics like occupancy rates and rent growth. But there’s one silent profit killer that often goes overlooked: resident turnover.


According to the 2025 Zego Resident Experience Management Report, the average cost of turnover in multifamily housing is $4,000 or more per unit. That figure accounts for more than just vacancy—it includes unit make-ready costs, lost rental income, marketing expenses, and leasing commissions.


And when multiplied across an entire portfolio, those dollars add up fast.



Breaking Down the $4,000 Cost


Let’s take a closer look at what’s included in that $4,000:

  • Unit Repairs & Renovations: Painting, deep cleaning, appliance replacement, carpet cleaning, and other wear-and-tear fixes can cost hundreds—or thousands—depending on the condition of the unit.

  • Lost Rent: Even with quick turns, most properties see at least one to two weeks of vacancy between residents. For a $1,500/month unit, that’s $375–$750 lost instantly.

  • Marketing & Advertising: Promoting the vacant unit via listing sites, social media, and signage all require time, budget, and effort.

  • Leasing Commissions & Incentives: Many properties offer concessions or pay leasing agents bonuses to fill units quickly—another hit to the bottom line.

And that’s assuming the unit rents at or above the previous rate. In a competitive or soft market, that’s not always guaranteed.


Why Turnover Matters to Asset Owners


High turnover rates erode profitability and reduce the predictability of your income stream. For property owners and investors, this creates uncertainty and volatility—two things no one wants in an income-generating asset.

On the flip side, resident retention offers both immediate and long-term value. Residents who renew leases:

  • Require little to no make-ready work

  • Don’t generate vacancy losses

  • Often accept modest rent increases (industry average: ~4.2% in 2024)

  • Strengthen the sense of community, which improves online reviews and referrals

How Foresight Minimizes Turnover


At Foresight Asset Management, our approach is proactive and retention-first. We don’t wait until lease renewal season to start thinking about the resident experience. From day one, we:

  • Focus on clear, consistent communication with residents

  • Address maintenance issues quickly and professionally

  • Leverage resident feedback to improve service

  • Offer tailored renewal incentives based on market data

  • Train on-site teams to build trust and rapport

The result? Lower turnover, fewer headaches, and stronger long-term asset performance.


The Bottom Line


Turnover is inevitable in multifamily housing—but excessive turnover is avoidable. Understanding the real cost behind each move-out is the first step toward building a more efficient, profitable operation.


If your portfolio is losing money to frequent turnover, it might be time for a new strategy—and a better partner. Let’s talk about how Foresight can help improve resident retention across your assets.