Rent Resiliency™

Rent Resiliency™ is the amount rent can decline before you have negative cash flow on rental properties.

We can measure it in terms of dollars or in terms of percent.

In other words, we can ask:

  1. How many dollars can rent decline before I’d have negative cash flow?
  2. Or, what percent can rent decline before I’d have negative cash flow?

When we talk about Rent Resiliency™ in dollars, what we’re really talking about is Cash Flow.

That’s because Cash Flow is the amount of dollars that rent can decline before you’d have negative cash flow.

But, the idea of Rent Resiliency™ as a percent does not have an equivalent. It is a unique way to measure risk in your real estate investments. There are many other ways to measure risk as well, but Rent Resiliency™ is one way.

Rent Resiliency™ is a chart you can view for any  Property in the Real Estate Financial Planner™ software.

Or, you can view Rent Resiliency™ for the entire  Scenario to see how risky the entire strategy is with this measure.

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