The True Cost of Tenant Turnover and How to Reduce It

Ask any landlord — tenant turnover isn’t just a hassle, it’s a major money drain. Every time a tenant leaves, you’re not only losing rental income but also spending time, money, and energy on finding someone new.

In markets like Hamilton and Niagara, where demand is high but competition among landlords is just as strong, reducing turnover is one of the smartest ways to protect your investment. Let’s break down what turnover really costs — and how to avoid it.

The True Costs of Tenant Turnover in Ontario

Lost Rental Income

When a unit sits empty, the bills don’t stop. Even a 2–6 week vacancy (common in Ontario, depending on location) can cost thousands. A Hamilton unit renting at $1,800/month? That’s $900 lost for just two weeks of vacancy.

Repairs & Cleaning

Even the tidiest tenants leave behind wear-and-tear. Think: repainting walls, deep cleaning carpets, patching holes, changing locks. Costs can range from a couple hundred dollars to well over a thousand if major touch-ups are needed.

Marketing & Advertising

Listing on Kijiji, Facebook Marketplace, or rental platforms isn’t always free — not to mention the cost of professional photos and your time spent coordinating showings.

Admin & Legal Costs

Screening new tenants takes time: applications, reference checks, and credit reports. And if the turnover follows an eviction, add possible LTB filing fees and legal costs.

Risk Factor

A new tenant always brings some uncertainty. Late payments, damage, or another short-term stay could land you right back in turnover mode.

Why Turnover Happens

Tenants don’t just leave for fun. The top reasons in Ontario usually include:

• Rent increases beyond what they can handle.
• Poor communication or unresolved issues with the landlord.
• Maintenance problems that make the home less livable.
• Life changes like new jobs, growing families, or relocations.

How to Reduce Tenant Turnover

Screen Tenants Carefully

Start strong. A thorough tenant screening process (credit, references, rental history) helps you find tenants who are more likely to stay long-term.

Stay on Top of Maintenance

Quick repairs = happy tenants. Ontario law requires landlords to keep units in good repair (RTA, Section 20), but going beyond the bare minimum builds loyalty.

Communicate Openly

Don’t wait for problems to snowball. Regular, respectful communication shows tenants you value them.

Keep Rent Increases Fair

Ontario sets an annual rent increase guideline (2025: 2.5%). Sticking to this — or even going below it — can encourage tenants to stay longer.

Add Value

Small touches matter: upgraded appliances, flexible lease renewals, or parking perks can tip the scales when tenants are deciding whether to renew.

When Tenant Turnover Can Be a Good Thing

Sometimes turnover works in your favour. For example:

• Releasing at higher market rent — Hamilton’s rental rates have risen steadily.
• Removing problematic tenants — sometimes turnover saves you from bigger headaches.
• Renovation opportunities — a vacant unit gives you space to improve the property and attract higher-paying tenants.

Keeping Tenants Is Cheaper Than Finding New Ones

At the end of the day, tenant turnover is expensive — but not inevitable. By investing in good communication, proper maintenance, and fair rent practices, landlords in Hamilton and Niagara can save thousands while keeping tenants happy.

And here’s the kicker: happy tenants make happy landlords. It’s a win-win that pays off in stronger cash flow, less stress, and a better rental experience all around.