Free Lease Renewal Calculator

Compare the cost of renewing a lease with a rent increase versus the cost of tenant turnover.

USD
%
months
USD

Net Gain from Renewal

$960

Total Turnover Cost$5,900
New Monthly Rent$1,680.00
Months to Recover Turnover Cost73.8 months

Net Gain from Renewal vs Expected Vacancy (Turnover)

Lease Renewal vs Turnover Analysis

Comparing the cost of retaining a tenant at increased rent versus finding a new tenant.

Renewal Gain

Annual Gain = (New Rent - Current Rent) x 12

Turnover Cost

Turnover Cost = Vacancy Months x Rent + Turnover Expenses

Decision Framework

  • If turnover cost exceeds annual gain, consider a smaller increase to retain the tenant
  • The longer it takes to recover turnover costs, the more valuable tenant retention becomes
  • Example Calculation

    $1,600 rent with 5% increase proposed, expecting 1.5 months vacancy and $3,500 turnover costs if tenant leaves.

    1. 01New rent: $1,600 x 1.05 = $1,680
    2. 02Annual gain from increase: ($1,680 - $1,600) x 12 = $960
    3. 03Turnover vacancy cost: $1,600 x 1.5 = $2,400
    4. 04Total turnover cost: $2,400 + $3,500 = $5,900
    5. 05Months to recover: $5,900 / $80 = 73.8 months
    6. 06The $960 annual gain does not justify risking $5,900 in turnover costs

    Frequently Asked Questions

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