Turn Costs Remain High!
Have you considered your costs on turning an apartment?
Some managers in Texas calculated their costs and were shocked!
Costs are close to $2,200-$3,200 (based on carpet, paint, cleaning, concession, vacancy, marketing, and advertising) per apartment.
What is the average cost your company spends to turn a unit?
If you are like the country’s average, and are turning more than 50% of your apartments (54% is the national average according to a 2012 study by the National Apartment Association), turnover costs your company hundreds of thousands of dollars (For a 200-unit community, turning 50% of the apartments = 100 apartments. 100 times $2,800 = $280,000!).
Saving just a fraction of those residents will add literally thousands of dollars to your bottom line. Determine your costs, and brainstorm ways to overcome this. Use the chart below to determine your cost of turnover.
Remember to include your time and your service tech’s time spent on turns. Multiply your (and the service tech’s) hourly pay times the number of hours you spend. Another bonus to cutting down turnover? Think about how much more time you’ll have!