Free Lease Renewal Analysis Calculator

Compare the cost of renewing a current tenant at a new rate versus turning the unit and finding a new tenant, factoring in vacancy, make-ready costs, and leasing expenses.

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Total Revenue if Renewed

$21,000

Total Revenue with New Tenant$16,850
Net Advantage of Best Option$4,150
Total Turnover Cost$5,350
Lost Rent During Vacancy$1,850
Break-Even New Tenant Rent$2,195.83

Total Revenue if Renewed vs New Lease Term (months)

Lease Renewal vs. Turnover Analysis

Deciding whether to renew a current tenant or turn the unit for a new tenant requires comparing total net revenue, not just the monthly rent difference.

Renewal Path

Total Revenue = Renewal Rent x Lease Term

Turnover Path

Total Revenue = (Market Rent x Lease Term) - Vacancy Loss - Make-Ready Cost - Leasing Fee

Hidden Turnover Costs

  • Vacancy loss: Typically 2-6 weeks of lost rent
  • Make-ready: Paint, cleaning, minor repairs ($500 to $5,000+)
  • Leasing costs: Advertising, screening, agent commission
  • Administrative time: Showings, applications, lease preparation
  • When to Renew vs. Turn

  • Renew if turnover costs exceed the rent difference over the lease term
  • Turn if market rent is significantly higher and the unit needs updates anyway
  • Example Calculation

    Current rent $1,650, renewal offer $1,750, market rent $1,850, 30 days vacancy, $2,500 make-ready, $1,000 leasing fee, 12-month lease.

    1. 01Renewal revenue: $1,750 x 12 = $21,000
    2. 02Vacancy cost: $1,850 / 30 x 30 = $1,850
    3. 03Total turnover cost: $1,850 + $2,500 + $1,000 = $5,350
    4. 04New tenant gross: $1,850 x 12 = $22,200
    5. 05New tenant net: $22,200 - $5,350 = $16,850
    6. 06Renewal wins by: $21,000 - $16,850 = $4,150
    7. 07Break-even new rent: ($21,000 + $5,350) / 12 = $2,196

    Frequently Asked Questions

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