Property management, built natively on Oracle NetSuite

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Platform

Six connected areas on one NetSuite system of record.

Solutions

Start from the places you manage, the business you run, your role or the workflow you want to fix.

NetSuite

Property management built natively on NetSuite, not synced to it.

Integrations

External tools exchange data with RIOO. Core property and financial records stay in NetSuite.

Markets

Localised pages for the five markets RIOO serves, with the rules that change how property is run.

Resources

Answers for choosing, implementing and running property management on NetSuite.

Company

The team behind the NetSuite-native property platform.

Resources · Glossary

What is loss to lease?

Loss to lease is the difference between market rent and the rent actually charged on in-place leases. It measures how far current rents lag behind what the same units would let for today.

How is loss to lease calculated?

For each occupied unit, compare the current market rent with the rent on the lease. Add the differences across the property for the period: loss to lease = Σ (market rent − in-place rent). It is often shown as a dollar amount and as a percentage of gross potential rent.

Loss to lease is usually positive when markets are rising and leases were signed earlier. A negative figure, sometimes called gain to lease, means in-place rents are above current market. Reliable figures depend on a consistent, documented way of setting market rent.

See also: Rental pricing & charges.

Illustration for loss to lease in property management

What does a loss-to-lease calculation look like?

Example (illustrative figures). A property has 50 occupied units with market rent of $1,600 each. Average in-place rent is $1,520. Monthly loss to lease is 50 × ($1,600 − $1,520) = $4,000, or 5% of the $80,000 market rent for those units.

Illustration for loss to lease in property management

FAQ

Loss to lease FAQs

Still curious? Ask the team.

Is loss to lease a bad sign?

Not necessarily. In a rising market, leases signed a year ago will naturally sit below today's rents. Loss to lease shows the potential upside on renewal. It becomes a concern if it persists because renewals are priced too low or market rent is not reviewed.

How is it different from vacancy loss?

Vacancy loss is the rent lost on empty units. Loss to lease is the rent forgone on occupied units because their contracted rent is below market. Both reduce income relative to gross potential rent, alongside concessions and bad debt. Reporting each item separately shows whether lost income comes from pricing or from empty units.

How do operators reduce loss to lease?

By reviewing market rents regularly, pricing renewals with reference to market within any legal limits, and tracking loss to lease by unit type and lease expiry. Decisions should balance rent growth against the cost of turnover if tenants leave. Comparing renewal offers with current market rent for similar units shows where the gap is widest.

See Loss to lease on live NetSuite data.