Trade-out

A trade-out is the change in rent between an expiring lease and the new lease for the same apartment unit. It is usually shown as a dollar amount or percentage and can be positive, flat, or negative. In multifamily operations, trade-out is most often reviewed when a resident moves out and a new resident signs a lease.

A resident was paying $1,500 per month for Unit 204. After turnover, a new resident signs a lease for $1,575 per month on the same unit, creating a +$75 trade-out, or +5%.

Trade-out helps operations leaders understand whether rent growth is actually being achieved at the unit level. Tracking it by property, floor plan, and time period can reveal pricing strength, weak demand, or the impact of concessions on revenue.