Chapter 14 · Renew or turn
Renew or raise the rent? Price the turnover first
Compare the increase with the cost of replacing the tenancy.
By Dan D’Ambrosio, Founder, Plenteous; Broker-in-Charge, Plenteous Management. Fourth quarter 2026 edition · Updated · Sources reviewed
The short answer
Compare the increase with the cost of replacing the tenancy. In the guide's $1,650 example, a turn costs about $4,175 in vacancy, make-ready work, leasing and utilities. Raising the rent to $1,725 adds $900 a year, so one turn would consume about 4.6 years of that increase.
In the $1,650 example, a turn can mean $1,650 of vacancy, $1,500 of make-ready work such as cleaning, paint and minor repairs, an $825 leasing fee and $200 of utilities and lawn care. Total: $4,175. Actual costs vary, but writing out each line makes the tradeoff visible.
| The choice | The result |
|---|---|
| Renew at $1,725; tenant stays | Adds $900 a year over $1,650. |
| Tenant leaves; example turn costs $4,175 | About 4.6 years of that $900 increase. |
| Renew at $1,690; tenant stays | Adds $480 a year; $420 less than the higher renewal. |
An extra $75 a month produces $900 a year if the tenant stays and pays. A $4,175 turn would consume about 4.6 years of that increase. Compared with renewing at $1,690, asking $1,725 adds only $35 a month, or $420 a year; the same turn equals almost ten years of that difference.
This does not prove every increase will cause a move or that rent should stay below market forever. Consider payment history, care of the home, market alternatives, rising costs and the probability of a vacancy. Begin the conversation about two to three months before the lease ends, following required notice and lease terms.
Related questions
Should I raise the rent on a good tenant?
Weigh the increase against the cost of a turn. In the guide's example, an extra $75 a month produces $900 a year, while a $4,175 turn would consume about 4.6 years of that increase. Consider payment history, care of the home, market alternatives, rising costs and the probability of a vacancy.
When should I start the renewal conversation?
About two to three months before the lease ends, following required notice and lease terms.
All chapters
Part one / The foundations
What you are really getting into
The opportunities, the responsibilities, and the preparation that gives you choices.
Part two / The numbers
Make the numbers yours
A worked budget, three financing scenarios, a difficult year, and two worksheets for the decision in front of you.
Part three / Running it well
Running it well
The life of a tenancy in the order it happens, the owner’s calendar, and the page to open when something breaks.