Renewals are trending in the right direction—but we’re not out of the woods yet.

The good news? There’s been a positive shift in an increasingly competitive market. National lease renewal rates rose from 51.8% in November 2023 to 54% by October 2024.

The bad news? That number still falls short of the 55% renewal rate many operators need just to break even. And it’s well below the 60–70% range that signals a truly healthy, high-performing portfolio.

In other words: while retention is improving, we’re still leaving money—and long-term value— on the table. Now is the time to double down on the moments that matter most to residents and reimagine renewals as a strategic lever for growth, not just a back-office task.

The True Cost of Apartment Turnover At a Glance

Every time a resident moves out, the costs add up quickly:

  • Marketing per new lease: $650–$1,500
  • Make-ready expenses: $1,500
  • Administrative costs: $250
  • Vacancy loss: ~$67/day (based on $2,000 average rent)
  • Staff time: 15–20 hours per unit

According to the National Apartment Association, the average turnover cost is $4,000 per unit. When scaled across a portfolio, even small improvements in retention can drive significant savings and boost long-term value.

The Return on Retention—Why It Pays to Keep Residents

Investing in resident satisfaction isn’t just good service—it’s smart business:

  • A 5% boost in satisfaction can lead to a 10–15% increase in retention.
  • Increasing retention by just 1% in a 1,000-unit portfolio can save $250,000 annually.
  • A strong move-in experience makes residents 2.5 times more likely to renew.
  • Properties with 4+ star ratings can command 4.1% higher rents.

The bottom line: Focusing on resident experience directly drives retention, revenue, and reputation.

Let’s Break It Down

Imagine moving from a 54% to 60% renewal rate:

Example: 100-unit property

  • $144,000 in annual savings
  • $2.4 million in added asset value (based on a 6% cap rate)

Example: 10,000-unit portfolio

  • $14.4 million in annual savings
  • $240 million in added asset value

The Value of Retention

Retention delivers real business impact by lowering operating costs, stabilizing revenue, strengthening property valuation, and increasing competitiveness in the market. It’s not just about keeping residents—it’s about driving long-term performance.

Now Is the Time to Act

Every vacant unit is lost income. Every disengaged resident impacts your reputation. Every missed opportunity to connect affects your bottom line. Don’t wait for the next renewal cycle to pass you by. Now is the time to take action. What’s your retention strategy? A closer look at your approach could be the key to improving your NOI and ensuring long-term success.