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Loss to Lease
The financial variance between a property's actual contractual in-place rental income and potential revenue if all units were leased at market rates.
Loss to Lease is a financial analysis metric calculating the variance between a property's current in-place contract rental revenue and the gross rent that could be achieved if every occupied unit were leased at current prevailing market rates.
Asset managers track loss to lease to measure revenue upside potential achievable as existing leases expire and roll over to market rates.
More in Accounting & Finance
See all Accounting & Finance terms →Additional Rent
Charges billed to a commercial or residential tenant beyond base rent, including CAM reconciliations, property taxes, insurance, and late fees.
Read definition →Bad Debt Reserve & Delinquency Aging
The accounting methodology categorizing past-due receivables into 30/60/90-day aging buckets and provisioning an allowance for uncollectable rent.
Read definition →Base Year & Gross Up Provision
A commercial lease provision adjusting variable operating expenses to reflect 95-100% occupancy to ensure equitable pass-through billings.
Read definition →CAM Audit Rights & Tenant Expense Objections
Contractual clauses permitting commercial tenants to inspect landlord invoices and ledger records supporting annual CAM true-up charges.
Read definition →CAM Reconciliation
The annual calculation reconciling actual shared building operating expenses against estimated monthly payments billed to commercial tenants.
Read definition →