Apartment Syndication Quiz

What is the formula to calculate loss-to-lease?

Loss-to-lease is the difference between market rents and actual rents. Ideally, loss-to-lease is less than 3% of the gross potential rent.

  • An apartment with a loss-to-lease greater than 3% is a value-add opportunity, because you can increase the revenue by demanding market rental rates without the need for renovations