Low turnover drives high occupancy – and revenues

February 22, 2012

One of the best ways to maximize revenues for investors in multi-family properties is to manage resident turnover.  Most anyone in business has heard the old adage that it is a lot less expensive to retain a “customer” than to acquire one.  I’ve seen it estimated – and illustrated – that the cost incurred when a resident decides not to renew a lease is as much as $2,000 – $4,000.

Focusing first on retaining residents – through excellent employee training, responsiveness  to maintenance issues, a focus on resident feedback, and  etc. – helps MRG achieve and maintain outstanding retention rates.  National turnover rates in 2010 were 54%.  The Southeast Region, of which Memphis is a part, averaged 55%.  The MRG turnover rate for 2010 was 42.7% and was 41% in 2011.