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Gain to Lease
Understand gain to lease, how it compares in-place rent to market rent, and why it matters for renewal pricing and income forecasts.
Definition
Gain to lease is the amount by which current in-place rent for an occupied unit is above today’s market rent. It is the inverse of loss to lease: the property is collecting more than the market would likely support for that unit right now. In multifamily, teams review it to understand how the rent roll compares with achievable rents at renewal or turnover.
Example
A resident is paying $1,850 per month, but comparable units are currently leasing for $1,750. The unit has a $100 monthly gain to lease, meaning the property is collecting $100 more than current market rent for that lease.
Why it matters
Gain to lease helps operations leaders spot revenue that may not be sustainable when leases renew. If many units have gain to lease, renewal offers, retention plans, and income forecasts may need to account for possible rent reductions, concessions, or higher move-out risk.