Renewal Downtime Cost Calculator

Non-renewing a below-market tenant has real downtime cost. This calculator runs the math.

Current rent

Market rent

Turn cost

Vacant days

Leasing commission

Net retention value

$2,492

Vacancy cost

$5,192

Annual rent upside

$2,700

How the math works

Annual upside = (market − current) × 12. Vacancy cost = daily market × vacant days + turn + commission. Net retention = vacancy cost − upside; positive = retain, negative = non-renew.

Amortize vacancy cost over two years, not one, when the turn enables 3+ years of market rent. Most pro-retention calculators are biased because they pit one month of turn against one year of upside; the right frame is one-time turn against the full remaining tenure.

How to Use

Enter current rent (being renewed at).
Enter market rent (achievable on turn).
Enter turn cost (paint, clean, make-ready).
Enter vacant days expected.
Enter leasing commission.
Read net retention value (negative = non-renew).

Frequently Asked Questions

When to non-renew?

When market rent × (1 − vacancy share) − turn cost − commission > current rent × 12. Practically: gap must exceed 10-15% of current rent to overcome turn economics. Small gaps (2-5%) rarely justify turn.

Hidden retention cost?

Ongoing below-market rent compounds. 5% below-market for 3 more years = 15% cumulative NOI drag, often more than one turn would have cost. Amortize retention cost over the likely additional tenancy.

Tenant quality?

Numbers ignore behavioral factors: good tenants (no damage, timely pay, low maintenance) are worth 20-40% retention discount versus market. Bad tenants should non-renew even at above-market rent.