Data-driven insights on vacancy costs, retention rates, and financial strategies for real estate investors managing rental portfolios

Tenant turnover represents one of the largest controllable expenses for landlords and real estate investors. Each time a tenant moves out, property owners face lost rental income, marketing costs, cleaning expenses, and potential renovations before a new lease begins. With U.S. landlords collecting an estimated $428 billion in rent in 2024, even small improvements in tenant retention can translate to significant portfolio gains. Understanding current turnover statistics helps property owners make informed decisions about retention strategies, screening processes, and financial planning. Baselane, a banking and bookkeeping platform for multi-property real estate investors and operators, provides integrated landlord banking and automated bookkeeping tools to track turnover-related expenses by property and entity, making it easier to measure the true cost of vacancy across a portfolio.

Key takeaways

• Turnover costs add up quickly: Each vacant unit costs landlords an estimated $1,795 per month, making retention a critical financial priority
• Most landlords maintain low turnover: 56% of property owners report tenant turnover below 10% annually, showing that low turnover is achievable with strategic management
• Rising costs squeeze margins: With 82% of landlords experiencing increased ownership costs in 2024, minimizing vacancy becomes even more important
• Profit margins remain thin: Property expenses consume most rental income, meaning every month of vacancy directly impacts the bottom line
• Tenant screening reduces risk: Quality screening helps identify reliable tenants who are more likely to renew leases and pay rent consistently
• Technology streamlines operations: Automated rent collection and bookkeeping tools help landlords focus on tenant relationships rather than administrative tasks

Understanding tenant turnover: what it is and why it matters

Tenant turnover occurs when a renter moves out and a landlord must find a replacement. This cycle creates direct costs through vacancy, marketing, and unit preparation, plus indirect costs from lost rental income during the transition period. For landlords managing multiple properties, turnover across the portfolio can significantly impact annual cash flow and overall profitability.

1. U.S. landlords collected an estimated $428 billion in rent in 2024

The rental housing market represents a massive economic sector. Total rent collected by U.S. landlords reached an estimated $428 billion in 2024, demonstrating the scale of opportunity and risk for property investors. Even a small percentage of this revenue lost to vacancy represents billions in potential income.

2. An estimated 9.72 million Americans owned rental property in 2024

An estimated 9.72 million tax-paying Americans owned rental property in 2024, based on projections from earlier landlord counts. This large population of individual investors, most managing small portfolios, faces turnover challenges that can be addressed through better financial tracking and tenant management practices.

3. Single-family rentals total 15.7 million homes

The single-family rental segment includes 15.7 million homes across the United States. These properties often experience different turnover dynamics than multifamily units, with longer lease terms but potentially higher turnover costs due to larger unit sizes.

Tenant turnover rates and retention benchmarks

Understanding typical turnover rates helps landlords benchmark their own performance and identify opportunities for improvement. Regional variations, property types, and management strategies all influence how often tenants choose to stay or leave.

4. 56% of landlords report turnover below 10% annually

More than half of property owners, 56% of landlords, report tenant turnover of less than 10% over 12 months. This benchmark shows that a majority of surveyed landlords reported turnover below 10% over the prior 12 months, although turnover can vary by market and property type.

5. Apartment turnover averaged 46.8% in 2018

The multifamily sector historically experiences higher turnover. The apartment turnover rate stood at 46.8% in 2018, meaning nearly half of apartment units saw tenant transitions that year. This rate reflects the transient nature of apartment living compared to single-family rentals.

6. Southeast landlords achieve better retention rates

Regional differences significantly impact turnover. In the Southeast, 63% of landlords report turnover of less than 10%, outperforming the national average. Factors like lower living costs and stable job markets may contribute to this regional advantage.

7. National rental retention reached 54.8% in August 2022

Retention rates fluctuate with market conditions. The national rental retention rate stood at 54.8% in August 2022, indicating that slightly more than half of tenants chose to renew their leases during that period.

The true cost of vacancy and turnover

Every vacant day translates directly to lost revenue. Understanding the full financial impact of turnover helps landlords prioritize retention strategies and budget appropriately for inevitable transitions.

8. Turnover costs landlords $1,795 per month per vacant unit

The financial burden of vacancy is substantial. Tenant turnover costs landlords an estimated $1,795 per month for each vacant unit. Actual turnover costs vary based on rent, vacancy duration, cleaning, repairs, marketing, and other property-specific expenses.

9. Each vacant apartment incurs approximately $1,825 in costs

Multifamily operators face similar expenses. On average, each instance of vacancy incurs costs of approximately $1,825. These costs accumulate quickly for landlords managing multiple units or experiencing higher-than-average turnover rates.

10. Evictions cost an average of $3,500 per occurrence

Forced turnover through eviction carries even higher costs. Evictions cost landlords an average of $3,500 per eviction, including legal fees, lost rent during proceedings, and often more extensive unit repairs. Effective tenant screening can help reduce eviction frequency.

11. National vacancy rate reached 7.3% in Q2 2026

Current market conditions show moderate vacancy levels. The national rental vacancy rate reached 7.3% in Q2 2026, reflecting ongoing supply and demand dynamics across rental markets.

Landlord income and operating expenses

Profit margins in rental real estate depend heavily on controlling expenses while maintaining occupancy. Understanding typical income and cost structures helps landlords evaluate how turnover impacts their specific financial situation.

12. Average landlord income reached $16,166 in 2024

Rental property generates meaningful income for most owners. The average landlord reported income of $16,166 from leased property in 2024. The source reports this as income from leased property rather than total gross rent collected.

13. Average gross profit is reported at $8,552

After accounting for costs, profit margins narrow significantly. iPropertyManagement reports average gross profit of $8,552 after expenses. Actual profit varies by financing, operating costs, property type, and vacancy.

14. 82% of landlords saw ownership costs increase in 2024

Rising expenses compound turnover challenges. 82% of landlords saw their costs of ownership increase in 2024, with 26% experiencing increases exceeding 20%. These rising costs make vacancy even more financially damaging.

15. 64.7% of properties have operating expenses above $2,500 per unit

Operating costs represent a significant portion of rental income. 64.7% of landlord-owned properties have operating expenses of $2,500 or more per unit annually. Tracking these expenses by property helps landlords identify which units require the most attention.

16. Single-family maintenance exceeds $10,000 annually

Single-family rentals carry substantial maintenance burdens. The average maintenance cost for a single-family home exceeds $10,000 per year. This expense often increases during turnover periods when units require preparation for new tenants.

17. 89 cents of each rent dollar goes toward property expenses

Rental income largely funds operational needs. The National Apartment Association's 2026 Dollar of Rent analysis finds that 89 cents of rent goes toward mortgage payments, operating expenses, payroll, property taxes, and capital expenditure reserves. The remaining 11 cents is returned to owners on average.

Baselane's landlord banking allows real estate investors to create unlimited property-specific accounts with no monthly account maintenance fees. This structure helps landlords track turnover-related expenses separately for each property and entity, providing clearer visibility into true vacancy costs.

Landlord demographics and portfolio composition

Understanding who owns rental property and how they manage it provides context for turnover statistics. Most landlords operate small portfolios and self-manage their properties, making efficient systems for tracking tenants and finances particularly valuable.

18. Mom-and-pop landlords own 89.6% of single-family rentals

Individual investors dominate the single-family rental market. 89.6% of single-family rentals are owned by mom-and-pop landlords managing 1-5 properties. These smaller operators often handle turnover personally, making streamlined processes essential.

19. 80% of individually owned rentals are self-managed

Most landlords handle property management themselves. 80% of individually owned rental properties are owner-managed rather than professionally managed. Self-managing landlords benefit from tools that automate administrative tasks like rent collection and bookkeeping.

Rent trends and market conditions

Rental market dynamics directly influence tenant decisions about whether to stay or move. Understanding current rent trends helps landlords set competitive rates that balance profitability with tenant retention.

20. 84% of landlords raised rents in 2024

Rent increases have become widespread. 84% of landlords increased rent prices in 2024, with nearly one-third raising them by 6-10%. While necessary to offset rising costs, significant rent increases can contribute to tenant turnover.

Managing turnover with better financial tools

Tracking turnover costs accurately requires organized financial systems. When landlords can see exactly how much vacancy impacts each property, they can make data-driven decisions about retention investments and pricing strategies.

Baselane Smart automatically tags transactions to properties, entities, and 120+ categories using real-estate-specific categorization. This automation helps landlords track turnover-related expenses like cleaning, repairs, and marketing without manual data entry. When tax season arrives, Baselane generates Schedule E reports that organize all income and expenses by property and entity.

For landlords managing multiple properties or entities, separate bank logins and multiple apps can spread financial information across systems. Baselane centralizes banking and bookkeeping workflows in one platform, with property-specific accounts that keep security deposits, operating funds, and reserves organized.