What Does ATR Mean in Multifamily?
What Does ATR Mean in Multifamily?
In multifamily real estate, "ATR" typically stands for "Absorption, Turnover, and Retention." These are key metrics used to evaluate the performance and dynamics of a multifamily property:
- Absorption: This refers to the rate at which available rental units are leased over a specific period. It is an important metric for understanding the demand for rental units in a particular market or property.
- Turnover: This measures the rate at which tenants move out of the property. High turnover rates can indicate issues with tenant satisfaction or property management, while low turnover rates usually suggest stability and tenant satisfaction.
- Retention: This is the percentage of tenants who renew their leases at the end of their lease term. High retention rates indicate that tenants are satisfied with their living conditions and the management of the property, while low retention rates may signal problems.
These metrics help property managers and investors assess the health and performance of a multifamily property, guiding decisions on property management, marketing strategies, and potential improvements.
