Your Property
Unit Count
200click to edit
20200400600800
In-Place Rent iCurrent average effective rent. Used to calculate vacancy loss and rent premium potential.
$1,800click to edit
$800$1,600$2,400$3,200$4,000
Turnover Rate iNational avg: 47% (NAA 2024). Class A: 40–50%. Class B: 45–55%. Class C: 50–65%. High turnover = bigger savings opportunity.
40%click to edit
15%27%40%52%65%
Avg Closet Size iLinear feet of closet rod per unit. Walk-ins: 10–16 LF. Reach-ins: 4–8 LF. Directly drives per-unit install cost at $375/LF.
8 LFclick to edit
4 LF7101316 LF
Industry benchmarks at this rent level: Avg turn cost ~$4,000 · Avg vacancy ~35 days (NAA 2024). Override in Model Assumptions.
Investment Parameters
Hold Period
Scenario
Mid-range: 50% acceptance, $50/mo premium, 5% retention lift. Based on industry medians for interior unit upgrades. Override below.
Market Conditions iAdjusts concessions and days-to-fill based on local supply/demand. Oversupplied markets show the strongest ROI from concession elimination.
National average conditions. ~35 days to fill, moderate concessions.
Deployment Strategy i"All Units" = install at every turn + proactive renewals. Faster penetration, higher upfront CapEx. "Retention Only" = only at-risk renewals. Lower risk, ideal for pilot validation.
Upgrade at turns and at-risk renewals. Faster penetration, higher upfront CapEx.
Property-Specific — click to override
Unit Turn Cost iAll-in cost: make-ready, lost rent, leasing, admin. Range: $3,000–$5,000 by class. Source: NAA/Zego 2023.
$4,000
Days to Fill iDays from move-out to new lease start. Tight: 25–35. Balanced: 35–42. Oversupplied: 42–50+. Source: Apartment List 2025.
35 days
Renewal Concession iAvg concession offered to retain renewing residents. Range: $500–$1,500. Adjusted by market conditions.
$1,000
New Lease Concession iAvg concession for new leases (free rent, reduced deposit). Range: $1,000–$4,000. Oversupplied: 6–10 weeks free. Source: RealPage Q3 2025.
$2,000
Financial Parameters
Annual CapEx Budget iMax annual spend on installations. Controls deployment pace. Lower budgets extend the rollout timeline.
$500,000
Discount Rate / Hurdle iYour cost of capital or minimum acceptable return. Used for NPV discounting and IRR hurdle comparison. Typical: 6–10% for stabilized multifamily.
8%
Scenario-Driven — click to override with your actuals
Resident Acceptance Rate i% of eligible residents who accept the closet upgrade at renewal or turn. Industry range for interior upgrades: 30–70%. Pilot data recommended. Source: J Turner Research.50%
Monthly Rent Premium iAdditional monthly rent for upgraded units. Range for interior upgrades: $25–$75/mo depending on market and finish level. Source: RealPage unit-level premium analysis.$50
Retention Improvement iReduction in turnover for upgraded units. Interior upgrades typically improve retention 3–8%. Source: NMHC/Kingsley Associates resident preference surveys.+5%
Concession Reduction i% of concessions avoided on upgraded units due to differentiated product. Differentiated units typically reduce concession need 35–65%. Source: RealPage competitive positioning studies.50%
Faster Lease-Up10 fewer days
Premium DecayFull Yr 1–4, –20%/yr
Market & Growth
Market Rent Growth iAnnual rent escalation applied to all rent-dependent calculations. National avg: 2–3%. Adjust for your submarket — high-growth: 3–5%, declining: 0–1%.2%
Renewals Needing Concession i% of renewing residents who receive a concession to retain. Range: 10–30% depending on market and tenure. Higher in oversupplied markets.20%
New Leases Needing Concession i% of new leases requiring concessions (free rent, reduced deposit). Range: 50–95% depending on market conditions. Source: RealPage Q3 2025.80%
Fixed Model Defaults
Installed Price iTurnkey: custom closet system, professional installation, and warranty. No GC markup, no punch list, no change orders. American-manufactured using furniture-grade TFL board and plywood.$375 / LF installed
Foregone Rent Reset iWhen a resident renews instead of turning, you keep them at below-market rent vs. resetting to market rate. Including this cost is conservative — it penalizes the retention benefit to avoid overstating savings. Most vendor calculators omit this. Toggle off to see results without this penalty.
Sources: NAA/Zego Turnover Survey 2023, Apartment List National Rent Report 2025, RealPage Market Analytics Q3 2025, NMHC/IREM Expense Operating Benchmarks, J Turner Research, Kingsley Associates. Defaults reflect national averages—override with your actuals.
Net Savings Over 5 Years
$823K
vs. status quo — $68/unit/mo
137% ROI
27% IRR
Payback in 25 mo
Calculating per-unit impact...
Investment Memo
Loading analysis...
IC Decision Criteria
Evaluating against standard investment thresholds...
✓ IRR exceeds hurdle
✓ Payback within hold
✓ NPV positive
✓ Safety margin >20pt
Total CapEx iOne-time investment for closet system installations across the property. Based on $375/linear foot installed.
—
per unit
5-Yr Net Savings iTotal savings (concessions + vacancy + turns + premium revenue) minus total CapEx investment over your hold period.
—
per unit / year
Payback iMonths until cumulative savings exceed total CapEx. Shorter = faster return on your investment.
—
to break even
⚠ Exceeds hold
5-Yr ROI iNet savings ÷ total CapEx. 100% means you doubled your initial investment.
—
on investment
IRR iInternal Rate of Return — the annualized effective return on invested capital. Directly comparable to your target yield or cost of capital.
—
annualized return
NPV iNet Present Value — total investment return in today's dollars. Positive NPV means this exceeds your cost of capital hurdle. Discount rate editable in assumptions.
—
at 8% discount
Per-Unit Economics
$3,000
install cost
per unit
per unit
$68
monthly savings
per upgraded unit
per upgraded unit
44 mo
payback
per unit
per unit
NOI Impact Composition iBreakdown of annual operating savings once the program is fully deployed. All figures based on your inputs and industry benchmarks.
Annual impact at full deployment
Avoided Turn Costs
$82K
Reduced Vacancy
$47K
Concession Savings
$31K
Rent Premiums
$58K
Break-even at 23% acceptance — base case assumes 50%
Implied Asset Value Uplift at 5.0% Cap Rate:
—
Sensitivity Analysis iShows how changes to acceptance rate and rent premium affect returns. Green = beats your hurdle rate. Current selection highlighted.
IRR by acceptance rate × rent premium — green beats 8% hurdle
Variable Impact Analysis iShows which input variables have the most impact on net savings. Each bar shows the range from -30% to +30% of the current value. Longer bars = more influence on results.
Sensitivity to variable-specific uncertainty ranges
Cumulative Net Savings
Year-Over-Year Cash Flow
| Year | CapEx | Gross Benefit | Net CF | Cumulative |
|---|
Unit Penetration by End of Hold99%
198 of 200 unitsby year 5
Side-by-Side Scenario Comparison
Capital Deployment Comparison iHow closet installations compare to other common unit upgrades. YOUR MODEL reflects your actual inputs. Benchmarks are typical 5-year ROI from NMHC/NAA industry studies and are not adjusted for your hold period or property-specific conditions.
Your model vs. industry-average 5-year ROI for common unit upgrades
5-Year Cost Comparison
| Without | With Closets | Δ | |
|---|---|---|---|
| Concessions | — | — | — |
| Vacancy Loss | — | — | — |
| Avoided Turn Costs | — | — | — |
| CapEx Investment | $0 | — | — |
| Rent Premium | $0 | — | — |
| Net Position | — | — | — |
—
—
Year 1 Savings Breakdown
Concession Savings
—Rent Premium Revenue
—Vacancy Reduction
—Turn Cost Savings
—Industry Benchmarks
NAA / Zego (2023): Average all-in turnover cost per unit: $3,500–$5,000 including vacancy loss, make-ready labor, and re-leasing costs.
J Turner Research / NMHC: Interior unit upgrades shown to improve retention 4–8% and support $25–$75/mo rent premiums depending on market and finish level.
RealPage (Q3 2025): National new-lease concessions averaged 5–8 weeks' free rent equivalent in 2023–2024. Oversupplied markets trending higher.
Methodology: Year-by-year unit-level simulation with phased deployment, scenario-adjusted parameters, and premium decay curves. IRR computed via Newton-Raphson iteration on annual net cash flows. NPV discounted at your specified hurdle rate. Break-even calculated via binary search on acceptance rate. All benchmarks from NAA/Zego (2023), Apartment List (2025), RealPage (Q3 2025), NMHC/IREM.
Capital comparison benchmarks: Industry-average 5-year estimated ROIs derived from published operator data. W/D: $50–80/mo premium at ~$4K install (MFE, McKinley). Interior reno: $150/mo at $6.5K/unit (Greystar/Avana La Jolla case). LVP: $75–100/mo at ~$2.5K (MFE Apartment Renovation Index). Kitchen: 10%+ annual target ROI (Home Properties). Smart home: $25/mo at $300–500/unit (UDR, 98% fleet). Bathroom: $50–75/mo at ~$2.5K (Gables "super punch"). Ranges vary by market and scope; your hold period ROI for closets uses your actual inputs.
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10–20 unit pilot with your actual operating data. Measure real results before scaling.