Real estate & rental
Rental Rent Increase Calculator
Works a rent increase, where the local rules on amount and notice come first.
Result
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.
Get a Free Business AuditHow the calculation works
The new rent from the current rent and the increase, shown in dollars and as a percentage, with the annual effect. The arithmetic is simple and the constraints are not: many jurisdictions limit how much rent may be raised, how often, and how much notice must be given, and some limit increases only for certain property types or tenancies.
What moves the number
- Local rent regulation, where it applies.
- Required notice period, which varies by jurisdiction and tenancy length.
- Market rent for comparable units.
- The cost of losing the tenant if they leave.
Where this one goes wrong
Check the local rules before the number, because an increase that exceeds a cap or is served with insufficient notice is unenforceable and can expose the landlord further. Rules vary by state and increasingly by city. Commercially, the increase has to be weighed against the full cost of a turnover, since a good tenant leaving over a modest increase usually costs more than the increase earns, and that comparison is rarely made.
Before you quote
- Check local caps and notice requirements before setting the amount.
- Serve notice in the form and timeframe the rules require.
- Weigh the increase against the cost of a turnover.
Questions
About this calculator
How much can rent be increased?
It depends on the jurisdiction. Many places limit the amount, the frequency, or both, sometimes only for certain property types or tenancies, and cities increasingly have their own rules on top of state ones. The local rule governs rather than the market.
How much notice is required?
It varies by jurisdiction and sometimes with the length of tenancy or the size of the increase. An increase served with insufficient notice is generally unenforceable, so the required period and the required form both matter.
Is a rent increase always worth taking?
Not once turnover costs are counted. A good tenant leaving over a modest increase typically costs more in vacancy, cleaning, repairs and leasing than the increase would have earned, and that comparison is worth making before serving notice.
The formula
expected value = annual gain - probability of turnover x cost of turnover
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How to use this calculator
- Current monthly rent ($). Enter your own figure; the page starts at $2,400.
- Increase by. Enter your own figure; the page starts at Percentage.
- Increase (%). Enter your own figure; the page starts at 4%.
- Increase ($). Enter your own figure; the page starts at $100.
- Cost if they leave ($). Vacant days plus cleaning, paint and letting fee.
- Chance they leave over it (%). Enter your own figure; the page starts at 25%.
The result updates as you type, so you can try a figure, see what it does to new rent, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Current monthly rent | $2,400 |
| Increase by | Percentage |
| Increase | 4% |
| Increase | $100 |
| Cost if they leave | $3,200 |
| Chance they leave over it | 25% |
What comes out
| Result | Value |
|---|---|
| New rent main result | $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 $352.
How sensitive the answer is
Holding everything else steady and changing only current monthly rent, this is what happens to new rent. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Current monthly rent ($) | New rent |
|---|---|
| $1,200 | $1,248.00 |
| $1,800 | $1,872.00 |
| $2,400 example above | $2,496.00 |
| $3,600 | $3,744.00 |
| $4,800 | $4,992.00 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Current monthly rent ($)
- A money amount, starting at $2,400.
- Increase by
- Choose from Percentage, Dollar amount.
- Increase (%)
- A percentage, between 0 and 50, starting at 4%.
- Increase ($)
- A money amount, starting at $100.
- Cost if they leave ($)
- Vacant days plus cleaning, paint and letting fee.
- Chance they leave over it (%)
- A percentage, between 0 and 100, starting at 25%.
What the results tell you
| Result | What it is |
|---|---|
| New rent | The headline result. A money figure. |
| Extra per month | A money figure. |
| Extra per year | A money figure. |
| Expected value after turnover risk | A money figure. |
| Turnover risk at which it stops paying | A percentage. |
What is not in this number
Property figures here exclude the costs that decide whether a deal works: vacancy, maintenance, management, capital expenditure and the transaction costs at both ends. A return that looks strong before those frequently does not survive them.
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