Cost-Benefit Analysis for Rental Property Turnover
Use this tool to Prioritize Your Property Upgrades
This interactive tool helps you quantify the impact of various upgrades on your rental income. For each improvement item (for example: Kitchen Upgrade, New Windows, Bathroom Update, Landscaping), enter the investment cost and the expected increase in monthly rent. The tool automatically calculates:
- Annual Rent Increase (Monthly Increase × 12)
- Annual ROI (%) = (Annual Rent Increase ÷ Investment Cost) × 100
- Payback Period (years) = Investment Cost ÷ Annual Rent Increase
| Improvement Item | Investment Cost ($) | Expected Monthly Rent Increase ($) | Annual Rent Increase ($) | Annual ROI (%) | Payback Period (years) |
|---|---|---|---|---|---|
| - | - | - | |||
| - | - | - | |||
| - | - | - | |||
| - | - | - |
How to Use This Tool
Input Values:
For each improvement (e.g., Kitchen Upgrade, New Windows, etc.), enter the estimated investment cost and the expected increase in monthly rent.
Calculation:
Click the “Calculate Cost-Benefit” button.
The tool automatically computes:
Annual Rent Increase: Expected monthly rent increase multiplied by 12.
Annual ROI (%): The annual rent increase divided by the investment cost, multiplied by 100.
Payback Period (years): The investment cost divided by the annual rent increase.
Comparison and Prioritization:
Use the computed values to compare different upgrade items. A higher annual ROI and a shorter payback period indicate a more beneficial investment.
If you wish to add another improvement item, click “Add New Item” and fill in the details for that upgrade.
This tool gives landlords a quick snapshot of which improvements might yield the best financial return – helping prioritize investments to maximize ROI over time. Enjoy using it, and feel free to tweak the inputs as needed!
