Why Tenant Renewals Matter More Than Rent Increases скачать в хорошем качестве

Why Tenant Renewals Matter More Than Rent Increases

In real estate, a tenant moving out and a tenant renewing can look similar on paper. In practice, they’re very different. When a tenant leaves, there are costs, vacancy, leasing, light renovations, and time. You might raise the rent, but part of that gain often disappears in turnover. We turn apartments all the time. But the squeeze has to be worth the juice. If the rent increase doesn’t cover the turn cost, the upside shrinks fast. When a tenant renews, the building stays stable. Cash flow is more predictable and operations are smoother. That’s why I don’t just ask how much rents can grow. I ask how likely residents are to stay. Takeaway: Higher rent doesn’t automatically mean better performance. In long-term ownership, fewer surprises often matter more than short-term upside.