Certified Apartment Manager (CAM) Practice Test

What is the typical cost of turnover when a resident leaves a community?

1. Less than one month’s rent

2. 1-2 months’ rent

3. 3-4 months’ rent

4. More than 2 months’ rent

The correct answer is: More than 2 months’ rent

The typical cost of turnover when a resident leaves a community often involves various factors, including loss of rental income, advertising costs, refurbishment expenses, and administrative costs associated with re-leasing an apartment. Therefore, it's essential to recognize that the cumulative impact of these elements can lead to significant financial implications for property management. The correct answer highlights that turnover costs can exceed two months’ rent. This includes not just the void period while the apartment remains unoccupied but also the expenses related to preparing the unit for the new resident, which could involve cleaning, repairs, and marketing efforts. Additionally, there are the costs of screening new tenants and lease preparation, further contributing to the overall turnover expenses. Understanding this aspect is vital for property managers, as it underscores the importance of tenant retention strategies to minimize turnover rates and associated costs. The implications of turnover extend beyond immediate financial loss, affecting community stability and operational efficiency.