What does "tenant rollover" signify in property management?

Tenant rollover refers to the process that occurs when tenants vacate a property and new tenants subsequently take their place. This concept is significant in property management as it encompasses the entire cycle of tenant departure and the onboarding of new tenants, which can impact the property’s occupancy rates and cash flow. Effective management of tenant rollover is crucial for maintaining high levels of occupancy and minimizing vacancy periods.

This process can involve marketing the unit, screening potential new tenants, conducting showings, and completing lease agreements, all of which are essential for ensuring that rental properties remain profitable. Thus, understanding tenant rollover is key for property managers and real estate investment trusts (REITs) focusing on maximizing their property performance.