Opportunity Cost in Real Estate: Are Your Units Underperforming?

Opportunity cost is the gap between what you're earning and what you could be earning. In rental real estate, it's the difference between your current rent and the market rate. Most landlords don't track this - and they're leaving thousands on the table.

The Formula

Opportunity Cost = (Market Rate - Current Rent) x 12 months

Real-World Example

You charge $1,300/month for a 2-bedroom. Market rate for comparable units is $1,500. Opportunity cost: $200/month = $2,400/year. Across 5 units, that's $12,000/year in income you're not collecting. That's not being generous to your tenants - it's mismanaging your portfolio.

The Bottom Line

Mozongi REMA calculates opportunity cost automatically. Set target rents in your unit structure, and the dashboard shows the gap for every unit ranked by highest opportunity cost first. You'll see exactly where to adjust.