NER Calculator: Renewal vs New Lease
Compare the true cost of renewing an existing tenant versus signing a new lease. Factor in vacancy loss, make-ready costs, concessions, and leasing expenses.
Renewal Scenario
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What you would offer for renewal
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New Lease Scenario
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Time between move-out and new move-in
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This calculator shows one property.
Cai shows your entire portfolio.
BubbleGum BI tracks renewal rates, turnover costs, and NER trends across every unit — with AI recommendations for optimal renewal pricing.
Schedule a DemoFrequently Asked Questions
What is the true cost of tenant turnover?
Turnover costs include vacancy loss (30-60 days), make-ready expenses, marketing costs, leasing commissions, and concessions. Total cost often ranges from $3,000-$8,000+ per unit.
When does it make sense to let a tenant leave?
When market rent significantly exceeds renewal rent (enough to offset turnover costs), when the unit needs renovation, or when the tenant causes consistent issues.
How do I calculate effective rent including turnover costs?
Subtract vacancy loss, make-ready costs, and concessions from gross rent over the lease term, then divide by the total period including vacancy.
What renewal increase should I offer?
This calculator helps find the break-even point. If turnover costs are high, even a below-market renewal can be more profitable than turning the unit.