Quick Answer: Maintenance cost covers the ongoing day-to-day repairs and upkeep of a property while units are occupied — HVAC service, plumbing fixes, appliance repairs, and preventive maintenance. Turnover cost (make-ready cost) is the expense incurred specifically when a resident moves out and a unit must be prepared for the next resident — painting, carpet cleaning, deep cleaning, and minor repairs. Both are operating expenses, but they have different drivers and different optimization strategies.
See our full guides: Maintenance Cost per Unit and Turnover Cost.
What Is Maintenance Cost?
Maintenance cost includes all routine and reactive repairs to keep a property operational and livable. This covers work orders submitted by current residents, preventive maintenance programs, common area upkeep, and system servicing.
Example: $320,000 annual maintenance ÷ 200 units = $1,600 per unit per year
What Is Turnover Cost?
Turnover cost (make-ready cost) is the total expense to prepare a vacated unit for a new resident. It includes painting, carpet cleaning or replacement, appliance cleaning, general cleaning, lock changes, minor repairs, and the cost of vacancy days during the turn.
Example: $2,800 make-ready + $870 vacancy (15 days × $58/day) = $3,670 per turn
Key Differences: Maintenance Cost vs Turnover Cost
| Factor | Maintenance Cost | Turnover Cost |
|---|---|---|
| When it occurs | Ongoing, while occupied | At move-out only |
| Driver | Property age, condition, resident use | Turnover rate |
| Predictability | Moderately predictable | Varies with turnover volume |
| Includes vacancy loss | No | Yes (days vacant during turn) |
| Optimization lever | Preventive maintenance, vendor management | Retention, faster make-ready |
| Typical per-unit range | $1,200–$2,500/year | $2,500–$5,000 per turn event |
When to Use Each Metric
Track maintenance cost when: Evaluating property condition, budgeting for routine operations, comparing vendor efficiency across properties, or assessing whether aging systems need replacement. Rising maintenance costs often signal that capital expenditures are overdue.
Track turnover cost when: Measuring the financial impact of move-outs, building the business case for retention programs, evaluating make-ready process efficiency, and deciding whether the additional rent from aggressive renewals justifies the turnover it causes.
How They Relate in Practice
There is a direct relationship between maintenance quality and turnover cost. Properties with strong preventive maintenance programs tend to have lower turnover costs because units are in better condition at move-out, requiring less make-ready work. Conversely, deferred maintenance increases both: residents submit more work orders (higher maintenance cost) and leave more damage at move-out (higher turnover cost).
For a 200-unit property with 50% annual turnover, turnover costs alone total $367,000 at $3,670 per turn (100 turns). Reducing turnover by 10 turns through better retention saves $36,700 per year in direct costs plus additional savings from reduced vacancy and leasing expenses. See how BubbleGum BI's operations dashboards track maintenance cost per unit and turnover cost per turn, helping you quantify the relationship between the two across your portfolio.
Track Maintenance and Turnover Costs Across Your Portfolio
BubbleGum BI tracks maintenance cost per unit, turnover cost per turn, and the relationship between the two — helping you optimize both for maximum NOI impact.
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