Why Use This Tool?
In commercial and multifamily real estate, 'Loss to Lease' represents the difference between the actual rent currently being collected (contract rent) and the current market rent. When acquiring a value-add property, capturing this gap is the primary mechanism for forcing appreciation. However, realizing this revenue takes time, as leases expire on a rolling basis and not all tenants will accept a massive increase.
This Mark-to-Market calculator mathematically projects your Next 12 Months (NTM) Effective Revenue. It takes your entire unit mix and splits it based on your assumed Probability of Renewal. It then applies a smaller, realistic rent increase to the tenants who choose to stay, and applies the full market rent to the units that turn over.
Crucially, the tool accounts for Vacancy Downtime and unit Turn Costs. A departing tenant results in zero revenue for the weeks the unit is being renovated, and incurs direct CapEx costs. By balancing the higher market rent against the vacancy loss and turn costs, this calculator reveals the true bottom-line impact of your lease-up strategy.
Maximizing Efficiency
The Rent Roll Mark-to-Market Projection tool is designed to save you time and reduce errors. Instead of manual calculations, get instant, accurate results that help you make better investment decisions.