Turnover and privatization
When a tenant ends their rental contract, the unit becomes vacant, and the lessor can choose to either privatize (sell) the unit or relet it to a new tenant. The turnover rate represents the percentage of tenants who leave, while the privatization rate indicates the percentage of vacant units sold instead of being relet. The relet rate is the difference between the turnover and privatization rates, showing how many units are relet to new tenants. Additionally, lessors can offer the option for current tenants to buy the unit, known as the privatization rate to current lessees. The strategies available include Privatization, which focuses on selling units, and Hold, which prioritizes re-letting them. If no units are privatized, the turnover rate matches the relet rate.
The Turnover & Privatization screen allows you to view the turnover and privatization rates and enter assumptions about the future of indefinite period rental contracts. To access this screen:
1. Go to the Asset details page of the asset/property you wish to view or edit.
2. In the navigation panel, select Input > Turnover & Privatization. The following screen appears:
 | This screen is only accessible if the property has at least one indefinite period rental contract. It has two versions, depending on the selected strategy: Hold or Privatization. |
The Turnover & Privatization screen is divided into three sections:
1. Turnover scheme
This section visually presents the input and calculated output in the upper part of the screen. The data in the visual is updated when switching between strategies.
2. Property details
This section helps you enter the necessary information for the turnover and privatization scheme.
3. Turnover rates
In this section, you can enter assumptions related to turnover rates.