Controllable factors account for a substantial share of turnover
Data Shows More Than Half of Resident Turnover is Preventable
The multifamily industry has long operated under the assumption that turnover is largely inevitable. Residents relocate for jobs. They buy homes. Life circumstances change. While these factors certainly drive a portion of move-outs, this mindset may be holding retention rates back from reaching their full potential.
New data suggests that a significant portion of resident turnover could be avoided by addressing controllable situations that impact the resident living experience. And as the average resident retention rate has taken a dip from previous years, now is an opportune time to improve efforts.
According to Zego’s Resident Experience Management Report, resident retention rates have declined from 60% to 57% over the past several years. While a 3-percentage-point drop may appear modest on the surface, the cumulative financial impact across a portfolio is significant. More important, the data reveals that this decline is not entirely driven by forces beyond operator control.
In fact, controllable factors account for a substantial share of turnover, often half or more of the reasons residents cite for non-renewal. This finding offers an encouraging signal for multifamily executives: Retention rates can improve meaningfully when operators stop accepting turnover as inevitable and start identifying the factors within their control.
The Real Turnover Cost of the ‘Inevitable’ Mindset
Before examining what is controllable, it is worth quantifying what is at stake. Industry estimates place the cost of turning a single unit between $3,000 and $5,000 when accounting for vacancy loss, make-ready expenses, marketing, and administrative time. For a 300-unit property experiencing 40% annual turnover, that translates to $360,000 to $600,000 in annual turnover-related costs.
The strategic implication is significant. If even half of that turnover is addressable, the savings opportunity becomes substantial. This is a direct path to improved net operating income without raising rents or cutting services.
The challenge is that many operators are investing retention resources in the wrong places.
The Alignment Gap Between Residents and Property Managers
Zego’s report reveals a striking disconnect between what property managers believe drives turnover and what residents actually report. When asked to rank factors behind non-renewals, operators and renters produced notably different priority lists.
Renters identified three primary frustrations that drive non-renewal decisions: expensive rent, poor maintenance, and security concerns. These controllable factors topped the list of resident complaints, yet operators consistently underestimate their weight. Instead, property managers stated that uncontrollable factors like job relocations and home purchases were the top drivers of turnover in their communities.
This perception gap means that retention strategies may be addressing the wrong problems entirely. Properties investing heavily in amenity upgrades while neglecting responsiveness to maintenance requests may be missing the mark. Communities focused on lease incentives while ignoring ongoing safety concerns may be solving for the wrong variable.
Need a Lease Agreement?
Access 150+ state-specific legal landlord forms, including a lease.
Reframing the Retention Conversation
The bottom line is that some turnover is structural and unavoidable, but a meaningful portion is well within an operator’s control. Once that distinction becomes clear, retention shifts from a passive metric to an active lever for portfolio performance.
This reframe changes everything at the executive level. Instead of viewing move-outs as an inevitability to manage, leadership teams can start pinpointing where intervention makes the biggest difference. The conversation moves from “turnover happens” to “where can we make an impact?”
The report also found that industry sentiment remains optimistic—59% of operators said they expect retention rates to improve in the coming year. This confidence suggests leaders across the industry recognize opportunity within their own operations, whether through enhanced resident engagement, refined renewal strategies, or technology investments that streamline the resident experience. The key now is turning that optimism into results.
Taking Action on Resident Retention
So where should operators start? The good news is that improving retention does not require a complete operational overhaul. It starts with getting a clearer picture of what is actually driving residents to leave.
Many organizations still rely on assumptions or anecdotal feedback to explain move-outs. Building a more structured approach to collecting exit data, and reviewing it at the portfolio level, creates a baseline for smarter decisions. Once that feedback is flowing, leadership teams can compare what they believed was driving turnover against what residents are actually saying.
This is where the real insights emerge. The gaps between operator perception and resident reality often point directly to missed opportunities, especially around the controllable factors like maintenance responsiveness, security, and how rent increases are communicated and perceived.
From there, prioritization becomes critical. Not every issue requires a major investment. Some of the most impactful changes, like faster communication on maintenance requests or more proactive outreach before renewal deadlines, can be implemented quickly without significant capital. Other improvements may take longer to plan and execute, but a clear understanding of resident priorities helps ensure resources go where they matter most.
Finally, retention is not a set-it-and-forget-it initiative. The most successful operators treat it as an ongoing discipline, regularly measuring performance, gathering fresh feedback, and refining their approach over time.
Source: Multifamily Executive
Accessibility