Property ManagementIntermediateDelaware Exam

What is 'turnover cost' in Delaware residential property management?

AThe cost of turning over management responsibility to a new manager
BCosts incurred when a tenant vacates, including cleaning, repairs, marketing, and lost rent during vacancyCorrect
CThe cost of annual property inspections
DThe administrative cost of preparing annual income statements

Why Costs incurred when a tenant vacates, including cleaning, repairs, marketing, and lost rent during vacancy Is Correct

Answer B: Costs incurred when a tenant vacates, including cleaning, repairs, marketing, and lost rent during vacancy

Turnover costs are expenses incurred when a tenant leaves and the unit must be prepared for the next tenant — cleaning, repainting, repairs, marketing, and lost rental income during the vacancy period.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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