Turnover Cost Breakdown

Ask ten landlords what their largest single expense is and most will say “repairs” or “property taxes.”

Yet the National Apartment Association estimates that every move-out costs between $1,000 and $5,000—and that’s before you count your own time [1].  

Because nearly 60% of that bill is pure lost rent, every extra day a unit sits empty chips away at Net Operating Income (NOI) faster than any leaky faucet ever will. Understanding your true turnover cost is the first step to protecting your bottom line.

This guide unpacks each turnover expense, shows you how to measure it, and offers concrete tactics—including two of Shuk’s time-saving tools—to keep more of your revenue where it belongs: in your pocket.

---

Direct Costs: The Visible Line Items

Cost Bucket	Typical Range	How to Quantify
Lost Rent During Vacancy	$60–$100 per day, or 50–60% of total turnover cost [2]	Days vacant × market rent
Make-Ready Labor & Materials	$200–$2,000+ depending on paint, flooring, repairs [3]	Keep receipts or track hours × hourly rate
Marketing & Advertising	$0–$200 per listing (Zillow, Apartments.com, photos) [4]	Listing fees + photographer cost
Tenant Screening	$25–$50 per applicant (credit, criminal, eviction) [5]	Fee per applicant × number of applications
Utilities During Vacancy	$5–$20 per day for electric, water, gas [6]	Days vacant × average daily utility cost
Lease-Up / Admin Fees	½ to 1 month’s rent if outsourced; DIY time often hidden [7]	Hourly value of your time or third-party invoice

1. Lost Rent

The national average unit now sits empty 34.4 days before a new lease is signed [2].

At a market rent of $1,800, that’s $2,066 in vanished revenue—by far the largest slice of the pie.

2. Make-Ready

Minor paint touch-ups might run $300, but a full repaint and carpet replacement can top $1,500 in a two-bedroom [3].

Track it granularly: paint, flooring, handyman labor, cleaning, and locksmith services all belong here.

3. Marketing & Advertising

While basic Zillow and Apartments.com listings can be free, boosting visibility or hiring a photographer quickly adds $100–$200 [4].

Don’t forget signage, yard signs, or local MLS fees if you use an agent.

4. Tenant Screening

Comprehensive packages that include income verification range $40–$55 per adult [5].  

If you subsidize this cost to attract more applications, it lands squarely on your ledger.

5. Utilities

Keeping lights and HVAC on prevents mold and frozen pipes but averages $150–$300 for a typical three-week vacancy in most regions [6].

6. Administrative Overhead

If you self-manage, your time is an opportunity cost.

Multiply the hours you spend showing, processing applications, and drafting leases by a conservative $35/hour—or log the leasing fee your property manager charges.

---

Indirect & Hidden Costs

1. Deferred Maintenance Catch-Up – Work you delayed during occupancy often surfaces now, eating into capital reserves.  

2. Depreciation Acceleration – More frequent carpet or appliance replacements shorten the useful life of assets.  

3. Reputation Risk – A vacant, poorly presented unit attracts weaker applicants and lowers perceived building quality.  

4. Staff Turnover – Leasing teams under pressure from chronic vacancies experience higher churn, raising payroll costs (industry turnover is 33% [8]).  

5. Opportunity Cost – Capital tied up in an empty unit can’t be redeployed for upgrades elsewhere.

---

Hypothetical Example

Property: 20 garden apartments, average rent $1,600  

Previous Turnover Rate: 35% (7 move-outs/year)  

After Tightening Renewal Process: 24% (5 move-outs/year)  

Item	Old Annual Cost	New Annual Cost	Savings
Lost Rent (30 days avg)	7 × $1,600 × 30/30 = $11,200	5 × $1,600 = $8,000	$3,200
Make-Ready | 7 × $900 = $6,300	7 × $900 = $6,300	5 × $850 = $4,250	$2,050
Marketing & Screening	7 × $180 = $1,260	5 × $150 = $750	$510
Utilities & Admin	7 × $250 = $1,750	5 × $230 = $1,150	$600
Total	$20,510	$14,150	$6,360 (≈30%)

How? The owner started early renewal outreach, standardized paint colors, and—critically—used Shuk’s Lease Indication Tool inside the landlord dashboard to forecast tenant stay-intent three months in advance and schedule maintenance proactively.

---

Five Ways to Shrink Each Turnover Cost Bucket

1. Cut Vacancy Days  

   • Pre-list the unit the moment notice is given. Shuk’s year-round listing visibility keeps your ad live 24/7, capturing leads even before a unit is empty.  

   • Use flexible self-showing tech or weekend open-houses to widen the applicant pool.  

2. Lower Make-Ready Spending  

   • Implement a “good-condition bonus” that refunds part of the deposit for units left paint-ready.  

   • Stock standard fixtures and paint colors so maintenance can swap, not shop.  

3. Trim Marketing & Screening  

   • Syndicate to free platforms first; pay to boost only if inquiries lag.  

   • Pass screening fees to applicants while capping them at state maximums to stay compliant.  

4. Manage Utilities Intelligently  

   • Install smart thermostats locked at 55–78°F to avoid extreme billing.  

   • Shut off water to exterior spigots and use LED bulbs during vacancy.  

5. Tame Administrative Overhead  

   • Automate lease templates and e-signatures inside Shuk; one click populates rent amounts, concessions, and local addenda, saving an average of 3–4 admin hours per lease.  

   • Batch application reviews and set a daily 30-minute window instead of ad-hoc checks.

---

Sample Turnover Cost Worksheet (per Unit)

Line Item	Assumption	Cost
Lost Rent	25 days × $60/day	$1,500
Paint & Touch-Up	Flat	$450
Deep Cleaning	Flat	$200
Carpet Steam	Flat	$200
Marketing	Photo shoot + Zillow boost	$120
Utilities	25 days × $10/day	$250
Admin Time	8 hrs × $35	$280
Total		$2,950

Plug your own numbers into Shuk’s Turnover Calculator to see the real-time impact on annual NOI.

---

Quick Turnover Checklist

Before Notice  

☐ Track lease expirations 120 days out with Shuk’s Lease Indication Tool  

☐ Offer renewal incentives or rent-to-market adjustments early  

After Notice  

☐ Pre-list unit and schedule a virtual walk-through  

☐ Order materials for known repairs (standardize SKUs)  

During Vacancy  

☐ Transfer utilities to landlord account  

☐ Complete safety items first: smoke detectors, locks, CO alarms  

☐ Document condition with date-stamped photos (for deposit accounting)  

Post-Move-In  

☐ Debrief make-ready team—update cost log  

☐ Adjust future budgets based on actuals  

☐ Send a welcome email with maintenance request link to build goodwill  

---

Conclusion: Every Day Counts  

In small portfolios, one extra month of vacancy can erase an entire year of cash-flow margin.  

By quantifying every cost and attacking it systematically—with help from tools like Shuk’s year-round listing visibility and Lease Indication Tool—you can reduce turnover expenses by double-digit percentages.  

Ready to see how much you could save? Explore Shuk’s suite of vacancy-reducing tools designed for small landlords today.

---

Sources  

[1] National Apartment Association – Crunching the Numbers on Turnover Costs (2022): https://naahq.org/news/crunching-numbers-turnover-costs  

[2] RealPage – Average Vacant Days Climbs to 34.4 (2024): https://www.realpage.com/analytics/vacant-days-climbs/  

[3] Landlord Studio – The Actual Cost of Apartment Turnover (2023): https://www.landlordstudio.com/blog/the-actual-cost-of-apartment-turnover  

[4] Zillow Rental Manager – Pricing FAQ (2024): https://www.zillow.com/rental-manager/resources/listing-fees  

[5] TransUnion SmartMove Pricing (2025): https://www.mysmartmove.com/SmartMove/resources/price.page  

[6] Octo Property Services – Apartment Turnover Costs (2024): https://octopropertyservices.com/blog/turnover-costs  

[7] ButterflyMX – Tenant Turnover Explained (2023): https://butterflymx.com/blog/tenant-turnover/  

[8] NAA – Property Management Industry Pulse (2023): https://naahq.org/industrypulse