The Real Cost of Vacancy Part V: Retention vs. Turnover

In this episode of Ironclad Underwriting, Jason Williams and co-host Frank wrap up The Cost of Vacancy series by tackling a critical question: when does it make more sense to keep a resident instead of turning a unit? They break down the real math behind renewals, concessions, and turnover costs while sharing real-world stories from managing multifamily properties across multiple markets. The conversation highlights how safety, tenant quality, and strong property management play a major role in retention and long-term cash flow.

Topics Covered

• Retention vs. turnover and how each impacts NOI
• The true cost of vacancy, make-ready, and lost rent
• When below-market rent can be the smarter financial move
• Concessions as a renewal strategy and when they backfire
• Occupancy thresholds and loss of pricing power below 90%
• How bad residents can push good tenants out
• Safety, community, and responsiveness as retention drivers
• Renewal rates, turnover KPIs, and what “healthy” looks like

Quotes

• “The cheapest unit to fill is the one that never went vacant.”
• “You lose almost all of your pricing power when occupancy drops below 90 percent.”

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