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Resident Retention ROI Calculator

Multifamily operators face a constant decision: retain a current resident with a concession, or let them leave and re-lease at higher market rent. Total turn cost (vacancy + make-ready + leasing commission) almost always exceeds the retention concession. This calculator computes net savings — letting operators set the right renewal concession ceiling.

$

Free month or rent reduction

$
$
$
$

Rent gain if turning

Net retention savings

$4,250

Positive = retain wins

Total turn cost

$5,900

Vacancy rent loss

$2,775

Annual new-lease uplift

$900

Retention concession cost

$750

How the math works

Resident retention vs turn: a $750 renewal concession is usually far cheaper than the $4-5K total cost of a turn (vacancy rent loss + make-ready + leasing commission). Even after netting out higher new-lease rent, retention almost always wins for stabilized properties.

In Class B/C with longer turn vacancy (60-90 days) and higher make-ready spend, retention math becomes even more compelling.

How to Use

  1. Enter renewal concession offered (e.g., $750 free rent or $50/mo discount × 12).
  2. Enter monthly rent and expected vacancy if not renewed.
  3. Enter make-ready cost and leasing commission.
  4. Enter the projected new-lease rent uplift if you turn.
  5. Read net savings — positive means retention wins.

Frequently Asked Questions

Concession ceiling?

Stop offering at the point where retention savings drops to zero. Typically that's $1,000-2,500 for stabilized assets — beyond that, accept the turn.

Why retention wins so often?

Even at full market rent uplift, the upfront cost of vacancy and turn easily totals 2-3 months of rent. Hard to recover that within the 12-month renewal cycle.

When does turn win?

Strong rent growth markets (10%+ YoY), shorter vacancy windows, and tenants with payment issues or property damage. Sometimes encouraging exit is the right call.

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