Turnover cost

Turnover cost — the full cost of a tenant change: repaint and deep-clean (₱10–30k on a typical unit), minor repairs, listing and showing effort, and the vacancy weeks between leases. Priced honestly, it flips a common intuition: a reliable tenant staying three years at slightly-below-market routinely out-earns serial “market rate” tenants — which makes retention behaviors (fast repairs, fair escalations, respect) yield engineering rather than soft-heartedness.

First used in: 3.9 · Operating the asset