Property methods and examples
Landlord & Leasing Guides
Understand the question behind the calculation. Explore definitions, practical examples and the assumptions that change the result.
Find a guide
22 of 22 guides shown
No guides match. Broaden the search or reset the filters.
How to Prorate Rent for a Partial Month
Prorate a partial month by dividing monthly rent by the chosen day-count denominator and multiplying by the chargeable days. The lease convention determines whether the start day is included and whether actual days or a 30-day divisor is used.
Read guide Landlord & LeasingHow to Calculate a Rent Increase Percentage
Rent increase percentage equals new rent minus old rent, divided by old rent, multiplied by 100. The dollar increase and annualized difference are separate outputs. The calculation does not determine whether a proposed increase is permitted or properly notified.
Read guide Landlord & LeasingNet Effective Rent: Free Rent and Concessions Explained
Net effective rent spreads the total rent after free months and fixed concessions over the full lease term. It is an average economic rent for comparison, not necessarily the amount invoiced in any particular month.
Read guide Landlord & LeasingLease Concessions: Face Rent vs Effective Rent
Face rent is the stated regular rent, while effective rent averages the rent obligation after concessions over the lease term. Comparing both figures helps expose the value of incentives and the likely payment change when an incentive ends.
Read guide Landlord & LeasingHow to Split Rent Fairly Between Roommates
A rent split can use equal shares or agreed relative weights such as bedroom area, custom points or income. The formula allocates total rent in proportion to the selected weights; arithmetic does not decide what arrangement is fair to everyone.
Read guide Landlord & LeasingSecurity Deposit Interest: Simple vs Compound Interest
Simple deposit interest applies the rate only to the original deposit; annual compound interest also earns interest on earlier modeled interest. The applicable agreement and local requirements determine whether interest is owed and what rate and convention apply.
Read guide Landlord & LeasingLandlord Costs That Change Rental Cash Flow
Landlord costs affect cash flow according to who pays them, their timing and whether they are operating, financing or capital items. A clear budget is more useful than a single generic expense percentage when comparing rental scenarios.
Read guide Landlord & LeasingTenant Turnover Cost: Vacancy, Make-Ready, Leasing and Lost Rent
Tenant turnover cost is the economic cost of replacing an outgoing tenant and can include vacancy, make-ready work, cleaning, repairs, leasing or advertising expense, concessions and staff or management time. A useful model separates one-time turnover costs from rent lost while the unit is unavailable.
Read guide Landlord & LeasingLease Renewal vs Vacancy: When Is a Concession Cheaper?
A lease-renewal concession can be compared with expected vacancy and turnover cost by calculating the total economic cost of each scenario over the same period. The cheaper option is not determined by the concession amount alone because downtime, make-ready, leasing expense and the achievable new rent also matter.
Read guide Landlord & LeasingGross Rent vs Effective Rent vs Collected Rent
Gross rent, effective rent and collected rent describe different stages of rental income. Gross or stated rent reflects the contractual or scheduled amount, effective rent adjusts for concessions over a period, and collected rent reflects cash actually received under the accounting convention used.
Read guide Landlord & LeasingSecurity Deposits: Cash Flow, Accounting and Tax Treatment Boundaries
Security deposits are generally tenant funds held subject to lease terms and applicable law, not ordinary rental income simply because cash was received. Financial modeling should keep refundable deposits separate from operating revenue and recognize that tax and legal treatment can change when amounts are retained or applied.
Read guide Landlord & LeasingFair Housing Basics for Rental Property Operators: Federal Rules to Know
The federal Fair Housing Act prohibits housing discrimination because of race, color, national origin, religion, sex, familial status and disability in covered housing-related activities. Rental operators should build screening, advertising and leasing processes around consistent criteria and also check state and local protections, which may be broader.
Read guide Landlord & LeasingDelinquency Rate for Rental Property: Formula and Cash-Flow Impact
Rental-property delinquency rate measures unpaid scheduled rent relative to the rent that was due for a defined period. A common dollar-based version is delinquent rent divided by scheduled rent due. Because late payments can later be collected, delinquency should be tracked separately from permanent bad debt and from physical vacancy.
Read guide Landlord & LeasingRent Collection Rate vs Economic Occupancy
Rent collection rate measures how much scheduled rent was actually collected, while economic occupancy measures how much potential rental revenue was realized after income losses such as vacancy, concessions and nonpayment. They are related but not interchangeable because collection rate usually focuses on occupied tenants and receivables, while economic occupancy compares realized revenue with broader potential revenue.
Read guide Landlord & LeasingLease-Up Costs: Marketing, Make-Ready, Concessions and Leasing Fees
Lease-up costs are the cash and revenue sacrifices required to move a vacant unit or space into a paying lease. They can include marketing, make-ready work, leasing commissions or fees, concessions, screening and administrative costs, plus the opportunity cost of vacancy during the lease-up period.
Read guide Landlord & LeasingTurnover vs Renewal Economics: A Worked Landlord Decision Model
A turnover-versus-renewal decision compares the economics of keeping an existing tenant with the cost and potential upside of replacing that tenant. The right comparison includes renewal rent, expected market rent, vacancy days, make-ready work, leasing costs, concessions and the probability that the replacement tenant actually achieves the projected rent.
Read guide Landlord & LeasingMonth-to-Month vs Fixed-Term Lease: Cash-Flow and Vacancy Trade-Offs
Month-to-month and fixed-term leases create different cash-flow and vacancy profiles. A fixed term can provide more predictable occupancy through the lease end, while month-to-month occupancy can offer pricing and termination flexibility but may create more frequent vacancy or repricing risk. The actual legal rights and notice requirements depend on state and local law.
Read guide Landlord & LeasingLease Renewal Increase: Modeling Rent Growth Without Ignoring Vacancy Risk
A lease-renewal increase should be modeled as a trade-off between higher rent and the probability of vacancy or turnover. Raising rent increases scheduled revenue only if the tenant renews and pays; a more aggressive increase can reduce renewal probability and create make-ready, marketing and downtime costs.
Read guide Landlord & LeasingMove-In Concessions: One Month Free vs Reduced Rent
One month free and reduced monthly rent can produce the same nominal concession but different cash timing and effective rent. The clean comparison is to calculate total contractual rent collected over the same lease term, then divide by the number of months to find net effective monthly rent.
Read guide Landlord & LeasingUtility Reimbursement and Owner-Paid Utilities: Impact on NOI
Owner-paid utilities generally reduce property NOI when they are operating expenses, while utility reimbursements can offset part of that burden when tenants repay the owner under the lease or billing structure. The key is to show gross utility expense and reimbursement income consistently rather than netting them in a way that hides cost trends.
Read guide Landlord & LeasingBad Debt vs Vacancy vs Concessions: Three Different Income Losses
Bad debt, vacancy and concessions all reduce rental income, but they describe different causes. Vacancy is revenue lost because space is unoccupied, concessions are intentional rent reductions or incentives, and bad debt is billed or accrued rent that the owner ultimately does not collect. Separating them improves underwriting and operating diagnosis.
Read guide Landlord & LeasingRent Growth Assumptions: In-Place Rent, Market Rent and Renewal Rent
In-place rent is the rent currently contracted, market rent is the rent supportable for a comparable lease in the current market, and renewal rent is the amount you expect an existing tenant to accept at renewal. A realistic rent-growth model keeps these three concepts separate instead of assuming every lease instantly resets to market.
Read guide