What is your typical tenant turnover rate for single family rentals as a manager?

[Faizan Ali Khan]

I'm aware of the vacancy rate being 6% in the SFR industry but I was wondering what percentage of units go on the market every year from your portfolio. If you manage properties, what do you typically see?

[Randall Alan]

Quote from @Faizan Ali Khan:

I'm aware of the vacancy rate being 6% in the SFR industry but I was wondering what percentage of units go on the market every year from your portfolio. If you manage properties, what do you typically see?

 @Faizan Ali Khan

I think  your answers could be all over the place on your question.  For us, we have 37 rentals, and we probably turn over 1-2 a year.  With that said, there are factors that come into play there.  We don't try to gouge our existing tenants with over the top price increases. Rents go up every year, but not to market rate.  What this means is that most of our tenants wouldn't be able to find a similar rental that they were leaving for a better price.  Yes, that also means we are leaving some money on the table in the short term - but we do raise our rents every year by 5-10% and when turnover happens we take them to market rate.  What we get out of that is lower turn-over, and (hopefully) a little respect from our tenants.

With that said, I think the more important question is: How long is one of our rentals empty when it does turn over?  The answer to that is: usually 3 days to 2 weeks (max).  As long as our tenant gives us the required 30 days notice, we will market our property, and within 2-3 days of turning on the marketing, we can have a qualified tenant ready to move in.  We look for tenants that can move in within 2-3 weeks (ie right after the exiting tenant leaves).  So our vacancy rate is very low!  If a tenant is breaking their lease to leave, we will work with them, but we make them cover the gap period between tenants as "still their responsibility" - and we let them know we are really good to get the unit filled quickly - so it is a joint effort to save the tenant money, and to fill the unit quickly.

All the best!
Randy