Tenant Retention Value Calculator

Is it cheaper to renew or replace a tenant?

Renewing almost always wins. The math heavily favors retention because turnover triggers $1,750 to $3,500 of avoidable cost (lost rent, make-ready, leasing) plus the lottery of finding a high-quality tenant. A modest renewal increase (3 to 5 percent) is usually well below the all-in cost of replacement, and a known tenant is more predictable than an unknown one.

When turning is the right call

Three situations make turnover worthwhile despite the cost. First, when current rent is far below market (more than 10 percent) and the tenant won't accept a meaningful catch-up increase. Second, when the tenant has caused real damage or has chronic payment issues that the next tenant likely won't replicate. Third, when the property is being repositioned (renovation, change of use) and the current tenant won't fit the new strategy.

The renewal conversation matters

Most renewal losses happen because the conversation starts 30 days before lease end, by which point the tenant has already started looking. Operators who poll tenants 5 to 6 months in advance (Shuk's Lease Indication Tool does this automatically) get more renewals at better rents because the conversation happens before the tenant has commitments elsewhere.

How to use this calculator

Enter current rent, the renewal rent increase percentage, your estimated turnover cost, and the expected market rent for a new tenant. The calculator returns 12-month revenue under each scenario and a verdict on which path wins.

Frequently asked questions

Is it cheaper to renew a tenant or find a new one?

Renewing is almost always cheaper. The dollar savings from avoided turnover (lost rent during vacancy, make-ready, leasing/advertising) typically range from $1,750 to $3,500 per turnover. Even after a modest renewal increase of 3 to 5 percent, the retained-tenant scenario beats replacement in nearly every realistic case.

How much does keeping a tenant save?

A renewed tenant saves the full turnover cost (commonly $1,750 to $3,500) plus the risk of vacancy stretching beyond expectations. The 12-month delta between renewing and replacing commonly lands at $2,000 to $4,000 net in favor of renewal, assuming similar rent levels.

What is a fair renewal rent increase?

Three to six percent is a common renewal increase band, calibrated to local market trends. Above 10 percent can trigger sticker shock and push the tenant to leave, eroding the retention savings. Below market by more than 10 percent over multiple renewals leaves significant money on the table.

How early should you start the renewal conversation?

Five to six months before lease end is best practice. By then the tenant has time to plan but hasn't committed to alternatives. Polling tenants at this stage with automated tools (like Shuk's Lease Indication Tool) reveals whether they're leaning toward renewal so you can prepare the offer or pre-market the unit accordingly.

What is the cost of tenant turnover vs renewal?

Turnover cost commonly runs $1,750 to $3,500 per turn. Renewal cost is effectively zero (maybe a small renewal admin fee). The math means a tenant who renews at the same rent generates a net $1,750 to $3,500 of avoided expense versus a turnover scenario, before counting the additional rent collected during what would otherwise have been vacant days.