The Hidden Cost That Can Hurt Your ROI
Rental turnovers aren’t just inconvenient, they’re one of the most overlooked threats to your cash flow. When a tenant moves out, expenses pile up fast. Cleaning, repairs, lost rent, and marketing costs can drain profits, especially if you’re unprepared.
And if your property is more than 30 years old? Those costs multiply. Aging plumbing, outdated finishes, or code compliance issues can turn a simple turn into a financial setback.
Many property owners underestimate this reality. That’s why having a dedicated turnover reserve isn’t optional… it’s essential.
In this article, you’ll get a simple rule for how much to save, what drives turnover costs (especially in older homes), and how to build a reserve strategy that protects your cash flow.
Let’s get ahead of the problem and make sure your Columbus rental is financially ready for the next transition.
The General Rule: Budget 1.5x–2x Monthly Rent Annually
Here’s a simple rule that can save you from major headaches:
Set aside 1.5 to 2 times your monthly rent each year to cover future turnover costs.
Why this works:
- It spreads out the big-ticket items (like repainting or repairs) so they don’t blindside your budget.
- It protects your cash flow from sudden, expensive surprises that require out-of-pocket contributions.
- It keeps you in control – you’re planning ahead instead of reacting under pressure.
Let’s look at the math.
Say your Columbus rental brings in $1,200/month in rent. Following this rule, you’d save $1,800 to $2,400 each year. That covers most standard turnover costs, including:
- Deep cleaning
- Paint touch-ups or full repainting
- Basic repairs
- Vacancy-related expenses
Think of turnover as a “when,” not an “if.” It’s a routine part of owning rental property… and it’s one you can prepare for.
Pro tip: Don’t treat turnover like a surprise. Treat it like taxes: it’s coming eventually, so you might as well budget for it.
What Turnover Reserves Should Cover
Your turnover fund isn’t just for a fresh coat of paint. It’s your safety net for everything it takes to get a rental ready for the next tenant.
Here’s what those reserves should actually cover:
- General repairs like patching walls, fixing outlets, adjusting doors, or replacing worn fixtures
- Paint touch-ups or full repaints, especially in high-traffic areas where wear is obvious
- Deep cleaning, including carpet steam treatments or refinishing hardwood floors
- Rekeying and hardware replacement to keep the property secure and compliant
- Landscaping or exterior touch-ups to make a great first impression
- Professional photos, marketing, and showing coordination
- Vacancy costs, such as lost rent between tenants
Each of these is a typical, recurring expense… and together, they add up fast.
If you don’t plan for them, you’ll either delay your next lease or end up paying out of pocket to keep the property moving.
The goal is to build a fund that’s ready when you need it. Because turnover isn’t a surprise, it’s part of the business. And smart investors treat it that way.
What Can Lower Your Turnover Costs?
Not every property needs a full-blown turnover budget. Some owners can get by saving a little less each year, and here’s why:
- Long-term tenants stick around, which means fewer turnovers to budget for
- Updated properties often need less work between leases
- Proactive maintenance keeps small issues from turning into big repair jobs
- Professional property management keeps the process moving and avoids costly delays
It really comes down to systems. The better your property is maintained throughout a lease, the less you’ll spend getting it ready for the next one.
Think of turnover as a kind of “maintenance multiplier.” If you stay on top of things (repairs, inspections, regular upkeep), then turnover becomes a much smaller project. If you don’t… it snowballs.
And the good news? With the right plan in place, you can smooth things out and keep more of your cash flow where it belongs.
What Can Raise Your Turnover Costs?
While some properties coast through turnovers with minimal effort, others turn into a money pit the second a tenant moves out. If you own an older home or haven’t kept up with maintenance, this might sound familiar.
Here’s what drives those higher turnover costs:
- High tenant turnover means more frequent cleaning, repairs, and downtime
- Outdated systems (like old HVAC units, galvanized plumbing, or original electrical) can fail inspection or need replacing
- Deferred maintenance often creates a snowball effect where one small fix leads to three bigger problems
- Code compliance issues pop up more frequently during city inspections in older homes
- Inconsistent vendors or DIY patchwork can lead to rework, delays, and higher labor costs
The bottom line? If your rental is over 30 years old and hasn’t had major updates in the last decade, you’re in the high-risk category for bloated turnover expenses.
In those cases, budgeting extra isn’t just smart, it’s necessary.
Turnover is when hidden issues come to light. Being realistic about your property’s condition today helps you avoid sticker shock tomorrow.
Want a Custom Approach? Use This Simple Turnover Budget Formula
If you prefer a more tailored way to budget for turnovers, try this quick formula:
Annual Turnover Budget = (1 ÷ Turnover Frequency in Years) × Average Turnover Cost
Let’s break that down.
Say you expect a turnover every 2 years, and your average turnover runs $3,000. That’s: 1 ÷ 2 = 0.5
0.5 × $3,000 = $1,500/year
For another example, using long-term residents:
If you don’t expect a turnover for 5 years, and your average turnover runs $4,500, the math looks like this: 1 ÷ 5 = 0.2
0.2 × $4,500 = $900/year
This approach helps you right-size your reserves to fit your situation, whether you’re managing one unit or scaling a portfolio. It’s especially useful for planning across a portfolio, where some units may turn every year and others every five.
Whether you follow the rule-of-thumb or use this formula, the goal is the same, don’t get caught off guard.
Older Properties: Why They Cost More to Turn
Even if your older rental is well-maintained, it’s likely going to cost more to turn, and that’s not a knock on your upkeep. It’s just the reality of aging materials and outdated infrastructure.
Here’s why older homes typically come with higher turnover costs:
- Aging materials like original hardwoods, tile, or trim often need full replacement, not just patching
- Non-standard layouts or finishes make it harder (and pricier) to find matching parts or materials
- Outdated systems like old plumbing or wiring increase the chance of mid-turn surprises
- Code compliance issues can pop up during inspections. What passed in 1980 may not meet 2025 standards
- Hidden pest or moisture problems can quietly damage floors, walls, or foundations over time
All of this adds complexity, time, and expense to your turnover.
If your property is 30 to 50+ years old, your savings strategy needs to reflect that reality. It’s not about over-preparing, it’s about being smart with your reserves so you’re not scrambling when the next tenant moves out.
Set aside more now, and you’ll avoid the stress and delays that come from being underfunded when it matters most.
Turnover Savings Guide for Older Rentals
Older properties come with more variables, so your reserve plan needs to match your property’s true condition. Here’s a quick guide to help you assess how much to save annually based on what shape your unit is in:
| Condition of Property | Recommended Annual Savings |
| Recently renovated | 2x monthly rent |
| Minor updates, average wear and tear | 2.5x to 3x monthly rent |
| Poor condition or original systems | 3x to 4x monthly rent |
Let’s say your rent is $1,200/month:
- If your unit is updated, plan on $2,400/year
- If it has moderate wear, budget $3,000–$3,600/year
- If it’s aging with original systems, aim for $3,600–$4,800/year
👀 Be honest with your evaluation. Underestimating now means overpaying later, usually under pressure.
This isn’t about being overly cautious. It’s about keeping your rental profitable and ready, without financial surprises.
Case Study: Budgeting for Older Homes (1950s and Beyond)
Let’s break this down with real numbers using a rental that earns $1,200/month.
1950s Rental
Typical features: aging kitchen appliances, original hardwoods, outdated bathroom, no mechanical upgrades.
- Recommended Reserve: 2.5x to 4x monthly rent
- Dollar Range: $3,000–$4,800 per year
Why? One plumbing repair, full repaint, and a few weeks of vacancy can easily run $4,000+.
1920s Rental
You’re likely dealing with older pipes, legacy electrical, uneven flooring, and wear on original finishes.
- Recommended Reserve: 3.5x to 4x monthly rent
- Dollar Range: $4,200–$4,800+ per year
Even if the home is charming, turnover often uncovers repairs that weren’t visible during tenancy.
1890s Rental
Historic homes have their own beauty… and complexity. Think moisture issues, pest damage, mismatched materials, and code surprises.
- Recommended Reserve: 4x+ monthly rent
- Dollar Range: $4,800+ per year
It’s not uncommon to spend over $5,000 per turn, especially if repairs involve custom work or specialized contractors.
Bottom line: the older the property, the bigger the buffer you need. Age isn’t a deal-breaker, but it does mean planning smarter to keep your asset performing.
Build a Turnover Reserve Strategy That Works
A solid reserve strategy doesn’t need to be complex. It just needs to be consistent and realistic.
Here’s how to get started:
- Start small if needed, but commit to saving regularly
- Use your rent roll to estimate annual targets based on unit age and condition
- Keep reserves separate in a property-specific savings account so they’re ready when you need them
- Review each unit’s condition annually and adjust your reserve goals accordingly
- Before a vacancy, get a scope estimate from your property manager so you’re not guessing at costs
Think of this like running a business—because that’s exactly what you’re doing. Owners who budget like professionals avoid stress, minimize downtime, and protect their returns.
Turnover isn’t optional. It’s predictable. Planning ahead gives you more control and fewer financial surprises.
Need Help Calculating Your Turnover Budget?
Not sure how much you should be setting aside? Don’t guess.
RL Property Management can provide a quick condition analysis of your property, recommend a realistic turnover reserve target, and help you avoid those costly surprises that catch owners off guard.
Contact RL Property Management today to get started on your personalized turnover savings plan. Let’s make sure your investment is always one step ahead.