Keep the tenant or re-lease? Compare the numbers.
Compare renewing the current tenancy with changing tenants for a higher rent, including vacancy and optional changeover costs.
Frequently asked questions
What costs can I include in the calculation?
You can include expected letting and advertising costs from your management agreement or property manager, plus optional preparation costs such as cleaning, touch-ups, gardening or minor repairs. Leave either field blank if it does not apply.
How is vacancy cost calculated?
Vacancy income loss is based on the current or renewal weekly rent that could have continued to be received while the property is vacant. The calculator does not use the expected new rent to value that loss.
What does break-even new rent mean?
It is the estimated new weekly rent required for the change-tenant option to match the keep-current-tenant option over the next 52 weeks, after the assumed vacancy and direct changeover costs.
Should I always change tenants if the new rent is higher?
No. A higher weekly rent does not automatically produce more income once vacancy and re-leasing costs are considered. Tenant payment history, property care, lease certainty, re-leasing risk and current market conditions may also matter.