Multifamily MTM Renewal Spread Calculator

MTM premiums protect cash flow but cost residents — quantify the trade.

MTM units

MTM rent

Fixed-term rent

Conversion %

Annual net uplift

$21,600

MTM premium / mo

$200

Converted units

How the math works

Net uplift = remaining MTM × monthly premium × 12. Converted units lock in fixed rent.

30 MTM × 70% convert = 21 fixed, 9 stay MTM × $200 × 12 = $21,600 annual uplift.

How to Use

Enter mtm units.
Enter mtm rent.
Enter fixed-term rent.
Enter conversion %.
Read annual net uplift.

Frequently Asked Questions

MTM premium strategy?

MTM premium typical: 10–25% over fixed-term rent ($150–500/month). Drives 60–80% of MTM residents to fixed-term renewal. Net uplift: blend higher-than-renewal rate on flexibility seekers + retention on remaining. Risk: heavy MTM premium pushes residents to relocate, increasing turn cost. Sweet spot: $150–300/mo premium, refreshed annually. Track MTM share monthly — spike often signals leasing-team weakness or market stress.

How does this support multifamily underwriting?

Multifamily acquisition and operations teams use this calculator alongside rent roll, T-12 P&L, expense ratio benchmarks, and comp set rents. Pair with a unit-level upside model and concession reconciliation. Sensitivity testing on rent growth, expense growth, and exit cap is essential — small changes compound on stabilized NOI and IRR.

Class A vs B vs C variance?

Class A: newer construction, premium amenities, higher rents but lower yield, lower expense ratio (~35–45%). Class B: 1990s–2000s build, value-add target, mid yield, expense ratio 40–50%. Class C: 1970s–1980s, deep value-add or workforce, higher yield but higher expense ratio (45–60%) and capex burden. Adjust assumptions to class.

When does this metric actually move the deal?

Single-line items rarely change a deal materially, but stacked operational improvements compound. A 3% rent increase + 1.5% expense reduction + 50 bps cap compression = 25–40% IRR uplift over 5 years. Use this calculator alongside others in the operations stack to identify the best 3–5 levers to focus on post-close.