Glossary
Churn
The share of contracts that ended in a given period, against the contracts active at the start of it.
Churn shows what share of your tenants walk away in a given period — usually measured monthly or annually. High churn means the facility constantly loses customers who then have to be replaced, and replacing a tenant costs more than keeping one.
It is calculated as the number of contracts that ended during the period, divided by the number active at the start of it, expressed as a percentage.
An example. A facility starts the month with 200 active contracts. During the month 10 of them end — tenants move house, finish a project, or go to a competitor. Monthly churn is 10 / 200 = 5%. If the same site loses 20 contracts out of 210 the following month, churn rises to roughly 9.5% — a signal to check what changed: the price list, the service, or the condition of the units.
Churn is worth tracking alongside occupancy. A site can run high occupancy and high churn at the same time, which is a far less stable business than low occupancy with low churn.