Finance category
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Market Rent Renewal Floor Calculator
Renewal floors cap how low rent can drop even at market declines.
Renewal rent
$456,000
Floor amount
$456,000
Ceiling amount
$528,000
How the math works
Renewal = max(floor, min(ceiling, market)).
Floor $456k, ceiling $528k, market $440k. Renewal floors at $456k — protecting landlord from $16k loss.
How to Use
- Enter current rent.
- Enter market rent estimate.
- Enter floor % of current rent.
- Enter ceiling % of current rent.
- Read rent at renewal.
Frequently Asked Questions
Floor mechanics?
Renewal rent cannot fall below X% of prior-term rent. Common floor: 95% or 100% of current. Protects landlord in down markets — can't reset to 80% of current even if market fell that far.
Tenant protections?
Ceiling cap on increases. Common: 110-115% of current rent at renewal. Without ceiling, landlords can demand market regardless of how far it's risen. Tenant typically negotiates floor AND ceiling.
Collar width?
Typical collar: 95-110% or 100-115% of current. Wider collars benefit market-sensitive party. Tight collars reduce optionality for both sides. Match collar width to expected market volatility over lease term.
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