Rent Increase Impact Calculator
Calculate the impact of rent increases on NOI and property value. Analyze potential returns from rent growth.
How it works
Rent increase impact = (New Rent - Current Rent) × 12 × Units. Value change = NOI change ÷ Cap Rate.
Example
$100 increase × 12 months × 10 units = $12,000 NOI increase, $200K value uplift at 6% cap.
FAQ
How much can I increase rent annually?
Varies by location. Some areas have rent control limits (2-5%), while others allow market rates. Check local laws and consider tenant retention costs.
What's the best time to increase rent?
At lease renewal, when market rents have increased, after property improvements, or when operating costs rise significantly.
How do rent increases affect property value?
Each dollar of rent increase adds $12/year to NOI. Divided by cap rate, this creates significant property value uplift (e.g., $200 value per $1 monthly increase at 6% cap).
Should I increase all units at once?
Consider phasing increases to reduce vacancy risk, unless leases expire at different times naturally. Monitor market absorption and tenant reactions.
How do I justify rent increases to tenants?
Point to market comparisons, property improvements, increased operating costs, or inflation. Provide advance notice and maintain good tenant relationships.