Model Unit ROI Calculator

Model units close leases but hold out of inventory. This calculator sizes ROI.

Model rent forgone (monthly)

Furnishing cost

Conversion lift %

Leases/month without model

Average lease value

Lease-up months

Net value from model

$414,000

Value added

$460,800

Total cost

$46,800

How the math works

Value added = additional leases × lease value. Cost = model rent × months + furnishing.

Model units break even inside 3-4 months of normal lease-up. Don't skimp on furnishing quality — cheap staging undermines conversion. Furnishing is a capex investment, not an expense.

How to Use

Enter model rent forgone.
Enter staging/furnishing cost.
Enter conversion lift %.
Enter leases signed monthly.
Enter average lease value.
Read ROI.

Frequently Asked Questions

Worth it?

Yes for larger lease-ups (50+ units). Conversion lift of 15-25% typically pays back rent forgone multiple times. Not worth it for 10-unit buildings.

Conversion lift?

10-25% typical. Higher for luxury product. Model lets prospects envision their unit; especially important in new construction with hard-to-visualize floor plans.

Cost?

Staging: $3-15k. Furnishing: $10-40k. Monthly rent forgone: $1-5k. Costs front-loaded; benefits compound over months of lease-up.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.