What is gain to lease in real estate?

What is Gain to Lease?

Gain to Lease in real estate refers to a situation where the actual rent being charged for a property is higher than the market rent. This can occur when the rents in a lease agreement are set above the current market rate, often due to factors such as a rapidly declining market, unique property features, or premium services that justify higher rents. It's the opposite of Loss to Lease, where actual rents are lower than the market rate, and represents an advantageous position for the property owner, indicating they are earning more than what is typical in the market.