How do I measure tenant retention and turnover?
Tenant retention rate is the number of tenants (or leases) who renewed divided by the number due to expire in the period, multiplied by 100. Turnover is the share of units where the tenant left in the period. They are complementary measures.
It matters because each tenant who leaves costs vacancy time, letting fees, cleaning and repairs.
Commonly misread:
- Measuring against all tenants rather than those whose leases were actually due.
- Counting tenants who moved to another unit in your portfolio as lost.
- Ignoring reasons for leaving, such as price, condition or service.
Record a leaving reason every time and compare it with maintenance response and rent increases. Estimating the total cost per turnover helps weigh retention spending against the cost of re-letting.
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