Rental Vacancy Loss Calculator
Calculate the financial impact of vacancy on a rental property by estimating lost revenue from vacant days and comparing effective occupancy rates.
Perte annuelle de vacance
$3,333
Annual Vacancy Loss vs Monthly Rent
Formule
## Understanding Vacancy Loss Vacancy loss is the rental income you forgo when units sit empty between tenants. It is one of the largest controllable expenses in property management. ### Formula **Annual Vacancy Loss = Daily Rent x Total Vacant Days** Where: - Daily Rent = Monthly Rent / 30 - Total Vacant Days = Average Days Per Turnover x Number of Turnovers ### Reducing Vacancy - Begin marketing 60 days before lease expiration - Offer competitive renewal terms to retain good tenants - Streamline the make-ready process (target 7-10 days) - Price units correctly for the market - Consider slight rent reductions over extended vacancy ### Industry Benchmarks - Professional management target: 3-5% vacancy rate - National average for residential: approximately 6-7% - Every day of vacancy costs you money, so speed matters during turnovers
Exemple Résolu
A 4-unit property renting at $2,000/month with 2 turnovers per year averaging 25 vacant days each.
- 01Daily rent: $2,000 / 30 = $66.67
- 02Total vacant days: 25 x 2 = 50
- 03Annual vacancy loss: $66.67 x 50 = $3,333
- 04Gross potential income: $2,000 x 12 x 4 = $96,000
- 05Vacancy rate: $3,333 / $96,000 = 3.5%
- 06Effective gross income: $96,000 - $3,333 = $92,667
Questions Fréquentes
What is an acceptable vacancy rate?
For well-managed residential properties, a 3-5% vacancy rate is considered good. Rates above 8% suggest pricing or management issues. In student housing or seasonal markets, higher vacancy rates may be normal during specific periods.
How do I reduce vacancy days between tenants?
Start marketing before the current tenant moves out, pre-schedule contractors for turnover work, maintain a pre-screened applicant waitlist, and keep units in good condition to minimize make-ready time. A target of 7-14 days between tenants is achievable with good systems.
Should I lower rent to avoid vacancy?
It depends on the math. If your unit sits vacant for 30+ days, the lost rent often exceeds the annual cost of a modest rent reduction. For example, one month of vacancy at $2,000 equals the cost of reducing rent by $167/month for a year.