Lease Trade-out Calculator

Trade-out = new lease rate minus prior tenant's rate, expressed as % and $. Institutional operators report this monthly — it's the cleanest measure of true rent growth on your rent roll.

Prior tenant's monthly rent

New lease monthly rent

Unit count (for annual portfolio $)

Trade-out %

8.33%

Trade-out per unit per month

$150

Annual portfolio rent lift

$1,800

How the math works

Trade-out is the rent-growth figure institutional investors actually trust. Loss-to-lease is theoretical; trade-out is realized.

Scale it to portfolio level by multiplying by lease turn count × 12 months. A $150 trade-out × 100 units × 12 months = $180k of annualized rent lift, worth $3M at a 6% cap.

How to Use

Enter prior tenant's rent.
Enter new lease rent.
Enter unit count (if you want portfolio impact).
Read trade-out $ and %.

Frequently Asked Questions

New vs renewal trade-out?

Report separately. New-lease trade-out typically higher (market rent). Renewal trade-out usually lower (retention concession). Blended trade-out = portfolio rent growth.

What's a strong number?

In normal markets: 3-6% new-lease, 2-4% renewal, 3-5% blended. In hot markets (2021-2022): 15-25% new-lease was common. In soft markets: flat or negative.

How to improve trade-out?

Lease-tracking discipline, renovation premiums, upgraded amenities, tiered pricing by floor/exposure, and strict concession policy. Weak lease managers leave 2-4% trade-out on the table.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.