The Rising Cost of Rental Turnover in Canada 2025

For many rental property owners, tenant turnover is an expected part of doing business. But in 2025, it has become one of the most expensive and operationally risky aspects of rental property management. Rising costs across labour, materials, and vacancy-related expenses are hitting owners harder than ever—especially those who aren't actively managing for retention.

Understanding what turnover really costs and what’s driving those increases is the first step to protecting your investment and improving long-term returns.

The True Cost of Turnover

Today, the average cost to turn over a single rental unit in Canada ranges from $2,500 to $4,000, based on figures from LandlordBC and the Federation of Rental-housing Providers of Ontario (FRPO). While these numbers can vary by location and unit type, the fundamentals remain consistent.

Lost rent is the largest contributor. If a unit sits vacant for even one month, the owner misses out on revenue—often $1,500 to $2,500 depending on the market. This alone may surpass your annual property management fee. Add to that the cost of cleaning, minor repairs, repainting, and routine maintenance, which typically ranges from $400 to $800 per unit. Then there’s the cost of advertising, listing syndication, showings, and processing applications. Even if you're managing it yourself, your time and energy have value—and if you're using a leasing agent or external platform, the financial cost becomes explicit.

Utilities also remain the owner's responsibility while the unit is vacant. Water, electricity, and heat—even for a short gap—can cost hundreds of dollars depending on the season. Taken together, turnover isn’t just an operational task. It’s one of the biggest threats to your annual returns.

Why Turnover Is More Expensive in 2025

Several forces are driving turnover costs higher in 2025, and most are outside the control of individual owners. First, inflation and supply chain disruptions have continued to push up the cost of materials and skilled trades. Combine that with trades and service labour shortages  and you get continuous delays in maintenance for your properties. This can translate directly to longer vacancy periods as updates can’t be made between leases and even indirectly, with increased turnover, as tenants become unhappy with the issues that remain unfixed.

Municipalities are also becoming more stringent with their requirements. Some cities have introduced mandatory inspection protocols or safety compliance checklists between tenancies. While well-intentioned, these regulations extend the time between move-out and move-in, requiring more coordination and more up-front work.

Lastly, insurers are watching vacant properties more closely. Properties left unoccupied for more than 30 days may see their insurance coverage reduced or premiums increased. In areas with seasonal vacancy risk, such as student-heavy towns or tourist destinations, this becomes a major concern for owners managing turnover inefficiently.

How to Reduce the Impact of Turnover

The good news is that turnover is one of the few controllable variables in rental ownership. Owners who take a proactive approach to lease management and tenant satisfaction are in the best position to reduce turnover frequency and duration.

Tenant retention starts with good communication and timely maintenance. When tenants feel their concerns are heard and their home is cared for, they are more likely to renew. Simple gestures like following up on repairs, providing advance notice for inspections, or handling seasonal upgrades can go a long way in building long-term trust. Even creating small connections with your tenants can help people feel more valued. This could be as easy as remembering names and sending holiday cards.

Lease renewals should also be approached with intention. Don’t wait until the 60-day notice window to start the conversation. Reaching out at the 90- or even 120-day mark allows time for honest dialogue and negotiation. Offering minor incentives such as a paint refresh, new blinds, or modest rent concessions can be far more cost-effective than covering an extra month of vacancy. 

Even when a turnover is unavoidable, you can reduce downtime by preparing in advance. Schedule cleaners, painters, and photographers ahead of move-out. Begin marketing the unit as soon as it’s legally permissible. Aim to complete showings and lease signing well before the unit is vacant. A well-run turnover can be completed in as little as five to seven days with proper planning.

Tenant screening also plays a role. Good tenants stay longer, pay on time, and take care of the property. Make sure your screening process is thorough and standardized—credit checks, income verification, rental history, and references should all be included.

If your property is experiencing frequent turnover, long vacancy gaps, or escalating re-leasing costs, it may be time to re-evaluate your approach. Offer exit surveys so that you can better understand why your tenants are leaving and make adjustments as necessary.

‍