Lease Trade-Out

Glossary

Lease trade-out measures the rent change between an old lease and the next lease for the same multifamily unit.

Definition

Lease trade-out is the change in rent between an outgoing lease and the next lease for the same apartment home. It is usually shown as a dollar amount or percentage, and it can be measured on a gross rent basis or a net effective basis after concessions. A positive trade-out means the new lease is paying more than the prior lease; a negative trade-out means the new lease is paying less.

Example

A resident was paying $1,800 per month for Unit 204. After move-out, the next resident signs a lease at $1,890 per month for the same unit. The lease trade-out is +$90, or +5%.

Why It Matters?

Lease trade-out helps operations leaders see whether turnover is creating rent growth or rent loss. Tracking it by property, floor plan, unit type, and concession level can reveal where pricing strategy is working, where demand is softening, and how new leases are affecting revenue.

‹ Lease Term

Leasing ›