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Rental model parameters explained

What each rental optimization setting does.

R
Written by Rodrigo Zaupa
  • Turnover Cost per Unit: the fixed cost of preparing a unit for a new resident, based on your history.

  • Average Renovation Cost: the average cost of renovating a unit at the property. Enter 0 if there have been no renovations.

  • Renovation Expected Annual ROI: the annual return you expect on renovations, from 0% to 100%.

  • Rent Change Range: the smallest and largest rent change you'd accept, between -20% and 20%. The default is -5% to 5%.

  • External Market Rent Weight: how much market rent data counts in the model, from 0% to 100%.

  • Enable Cap Rent by Market Rent: keeps recommended rents under a percentage of market rent, set in Market Rent Limit Percentage.

  • Enable Different Rental Prices by Term: recommends different rents by lease length, between the minimum and maximum set in Term Value (1 to 20 months).

[Image: The "Configure Parameters" step with the New Lease tab]

Term premium

With different prices by term on, Configure Term Premium offers two ways:

  • Percent Of Leases Expiring: the share of leases you want to expire each month. The model uses it to spread expirations.

  • Term Premium: a fixed premium for each lease length, added to the result. If you set one term, set them all.

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