# Tenant Turnover — % who do not renew their lease

Turnover has a triple cost: vacancy time, new tenant acquisition cost, and make-ready expenses (painting, repairs). Reducing turnover by 10 percentage points can improve NOI more than raising rents.

## Where to find it

Contracts not renewed or terminated early during the year ÷ total active contracts. Pull it from your management system, or review the year's expired contracts in your spreadsheet.

## If it's off

With 40% turnover in 50 units, you need to fill 20 units every year. If each process takes 30 days of vacancy and $1,800 in cost, that is $36,000/year just in turnover costs — not counting uncollected rent.

## LATAM Benchmarks

| Status | Range |
|---|---|
| Healthy | < 20% annual (tenants renew for an average of 5 years) |
| Alert | 20–40% annual |
| Critical | > 40% annual (structurally high turnover) |

## How to improve it

The main cause of non-renewal is lack of proactive contact. A renewal process that starts 60 days before expiration and offers clear terms retains 70–80% of satisfied tenants who would otherwise not renew.

Related metrics: [Monthly OpEx](https://www.uniteconomicscalculator.com/en/glossary/monthly-op-ex.html) · [Portfolio Value](https://www.uniteconomicscalculator.com/en/glossary/property-value.html) · [Tenant CAC](https://www.uniteconomicscalculator.com/en/glossary/leasing-cost-per-unit.html)

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