Turnover in Arlington CAFs - Arlingtonva
Turnover in Arlington CAFs Turnover refers to the percentage of rental units in a property in which tenants move out during a 12-month period. A high turnover rate can mean a more transient community, lost revenue due to vacancy, and a high demand on management staff time for repairs, cleaning, and re-leasing.
Typical turnover rates in the multifamily housing industry range between 35% and 50%; the rates for CAFs, however, are much lower: A sample of CAFs — 617 apartments in 15 properties — shows the following percentages of units in which tenants move out, in a span of 12 months:
Size 1BRs 2BRs 3BRs
Units 212 307 98
Annual turnover rate 18.9% 11.8% 9.9%
Committed Affordable Units (CAFs) are units that were built, acquired, or renovated with public funds and are designated to remain at below market rates. These units are set aside specifically for low- or moderate-income households at varying levels of affordability.
Sources for turnover in market-rate rental units: Three local property management companies reported overall turnover rates for market-rate units to be between 35% and 40%. One company specified that its rate for 3BR units was lower, around 22%, but still higher than the rates for CAFs. Similarly, the 2013 “Survey of Operating Income and Expenses in Rental Apartment Communities” of the National Apartment Association reported that the turnover rate for the northeast region of the U.S. (which includes Virginia) was “46 to 47%.” An article in the February 2013 Multifamily Executive stated that “turnover rates hover around the 50 percent mark nationwide.” The relatively low turnover rate for CAFs tenants suggests that they contribute to community stability; and in terms of vacancy loss and make-ready time, CAFs may be less demanding for management.
Arlington County Housing Division | Department of Community Planning, Housing and Development | 2100 Clarendon Boulevard | Arlington, VA 22201
August 2014
Typical turnover rates in the multifamily housing industry range between 35% and 50%; the rates for CAFs, however, are much lower: A sample of CAFs — 617 apartments in 15 properties — shows the following percentages of units in which tenants move out, in a span of 12 months:
Size 1BRs 2BRs 3BRs
Units 212 307 98
Annual turnover rate 18.9% 11.8% 9.9%
Committed Affordable Units (CAFs) are units that were built, acquired, or renovated with public funds and are designated to remain at below market rates. These units are set aside specifically for low- or moderate-income households at varying levels of affordability.
Sources for turnover in market-rate rental units: Three local property management companies reported overall turnover rates for market-rate units to be between 35% and 40%. One company specified that its rate for 3BR units was lower, around 22%, but still higher than the rates for CAFs. Similarly, the 2013 “Survey of Operating Income and Expenses in Rental Apartment Communities” of the National Apartment Association reported that the turnover rate for the northeast region of the U.S. (which includes Virginia) was “46 to 47%.” An article in the February 2013 Multifamily Executive stated that “turnover rates hover around the 50 percent mark nationwide.” The relatively low turnover rate for CAFs tenants suggests that they contribute to community stability; and in terms of vacancy loss and make-ready time, CAFs may be less demanding for management.
Arlington County Housing Division | Department of Community Planning, Housing and Development | 2100 Clarendon Boulevard | Arlington, VA 22201
August 2014
