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Renewal Rate
Renewal rate measures the share of expiring leases that renew, helping multifamily teams track retention, occupancy risk, and turnover exposure.
Definition
Renewal rate is the percentage of residents with expiring leases who choose to stay instead of moving out. It is commonly calculated as renewed leases ÷ expiring leases × 100. Teams use it to understand resident retention, lease-expiration risk, and how well the community is meeting resident expectations.
Example
If a 250-unit community has 40 leases expiring in June and 26 residents renew, its June renewal rate is 65%: 26 ÷ 40 × 100.
Why it matters
Renewal rate helps operations leaders forecast occupancy, staffing needs, make-ready volume, and exposure to vacancy. A higher renewal rate can reduce turnover work, lost rent, marketing effort, and administrative time tied to replacing residents.