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Real estate & rental

Rental Rent Increase Calculator

A rent increase in dollars and percent, and whether it is worth the risk of a turnover.

Your numbers

$
%
$
$
Vacant days plus cleaning, paint and letting fee.
%

Result

New rent $2,496.00
Extra per month $96.00
Extra per year $1,152
Expected value after turnover risk $352
Turnover risk at which it stops paying 36.0%
New rent is $2,496.00, gaining $1,152 a year. After a 25 chance of turnover the expected gain is $352.

Tenancy rules are set by state and often by city, and they are among the most locally variable areas of law there is. Deposit limits, notice periods, late fee caps, interest on deposits and rent increase restrictions all differ and change. This is arithmetic, not legal advice; check your own jurisdiction before relying on any of it. Many jurisdictions cap increases, require specific notice periods, or restrict increases during a fixed term. Rent control and rent stabilisation rules differ street by street in some cities.

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Questions

About this calculator

Should I raise the rent every year?

Small regular increases are usually better received than infrequent large ones, and they keep the rent near market so a turnover does not reveal a big gap.

How much notice is required?

Typically 30 to 90 days depending on the jurisdiction and the size of the increase, and longer for larger increases in several states. Check locally, because getting notice wrong invalidates the increase.

The formula

expected value = annual gain - probability of turnover x cost of turnover

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