Revenue

Loss to lease

The gap between market rent and the rent residents are actually paying under their current leases.

Loss to lease equals total market rent for occupied units minus total in-place lease rent for those units. If market rent for a unit is $1,600 and the resident pays $1,500, that unit carries $100 a month of loss to lease.

It builds up when market rents rise faster than renewal increases. Managers use it to size the upside available at renewal and to judge whether renewal pricing is keeping pace with the market.

See it on a sample company