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Lease Renewal Increase Calculator
Right-size the renewal rent. The proposed new rent is bounded by market, statutory or lease caps, and your expense growth floor. We then weigh expected turnover loss to show net expected gain.
Comparable units today
Statutory or lease cap
Tax, insurance, maintenance
Proposed new rent
$2,035
Increase $/month
$185
Increase %
10.00%
Lease-term gross gain
$2,220
Expected turnover risk cost
$913
Net expected gain
$1,308
Safe minimum (cover expenses)
$74
Below-market loss to date
$600
How the math works
A renewal increase has three ceilings: market rent (don't price above your comp set), statutory or lease cap (CA AB 1482, NY rent stabilization, lease term limits), and tenant tolerance (risk they leave). The floor is expense growth — if your taxes, insurance, and maintenance go up 4%, holding rent flat means a real cut. Smart operators raise to cover expenses every year and close to market every 2-3 years.
CA AB 1482 caps annual increases at 5% + CPI (max 10%) for covered units. NYC rent stabilization caps vary by lease term and Rent Guidelines Board vote. Most non-rent-controlled jurisdictions allow any increase with proper notice (30-90 days). Always weigh the renewal increase against turnover cost — a 5% increase that triggers turnover often loses money.
How to Use
- Enter the current rent and current market rent.
- Set the rent-control or lease-term cap.
- Estimate annual expense growth (taxes, insurance, maintenance).
- Enter tenant tenure and your read on turnover probability.
- Enter days vacant if turnover and full make-ready cost.
- Set the renewal lease term to project gross gain.
- Read proposed rent, gross gain, and net of expected turnover risk.
Frequently Asked Questions
How much should I raise rent at renewal?
If the unit is at or above market, raise enough to cover expense growth (typically 3-5%). If below market, close half the gap each renewal — this captures most of the upside without triggering turnover. Below-market tenants are valuable; chasing market in a single year often costs more in turnover than gained in rent.
What are the legal caps?
California AB 1482 caps covered units at 5% + CPI (max 10%) annually. NYC rent stabilization is set by the Rent Guidelines Board. Many cities (Portland, Minneapolis, St. Paul, Oregon statewide) have local caps. Most other jurisdictions are uncapped but require notice (30-90 days).
When is a 0% renewal smart?
When the gap between current and market is small, the tenant is exemplary, turnover cost is high, and your market is soft. The cost of a turnover (vacancy + make-ready + leasing) often equals 1-2 months of rent — losing a good tenant for a 3% bump is bad math.
How do I know what market is?
Pull your comp set monthly: same bed/bath count within 1 mile, listed in the last 60 days. Use Apartments.com, Zillow, and on-site competitor signs. Adjust for amenities and condition. The asking price minus typical concessions is the effective market rent.
Related Calculators
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Tenant Turnover Cost Calculator
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Make Ready Cost Calculator
Make-ready budget.
Vacancy Loss Calculator
Vacancy income loss.
Rent Concession Calculator
Effective rent with concessions.
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