Multifamily Renewal Rate Calculator

A 5-point swing in renewal rate moves NOI materially through avoided turn cost and lost rent.

Total units

Renewal rate %

Turn cost per unit

Vacancy days

Monthly rent

Annual turn cost impact

$654,750

Annual turns

Lost rent vacancy

$249,750

How the math works

Turns = units × (1 − renewal). Cost = turns × turn cost + lost rent during vacancy.

200 × 45% = 90 turns × $4,500 = $405k + 90 × 1.5 × $1,850 = $250k = $655k turn impact.

How to Use

Enter total units.
Enter renewal rate %.
Enter turn cost per unit.
Enter vacancy days.
Enter monthly rent.
Read annual turn cost impact.

Frequently Asked Questions

Renewal rate benchmarks?

Class A urban: 50–58% renewal rate typical. Class B suburban: 55–65%. Class C affordable: 60–72%. Renewal increases drive non-renewal: each 1% rent increase loses 0.5–1.0% renewals. Avg turn cost: $2,500–6,500 (paint, carpet, leasing time, vacancy 30–60 days). Best operators: tiered renewal program, communicate 90 days out, soft offer ($25 gift card / minor upgrade) saves 3–5 pts. NOI impact: 5pt renewal lift = 1.5–3% NOI on stabilized property.

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.