An empty property bleeds money. Learn how to calculate vacancy risk, build a reserve fund, and keep your units filled with happy tenants.
Vacancy is inevitable. Between tenants, you lose rent but still pay the mortgage, taxes, and utilities. A 5% vacancy rate might not sound like much, but over time it can wipe out your profits. Successful landlords plan for vacancies before they happen.
Average time a property sits empty. Market average is 4–8%. Calculate yours: (vacant days ÷ 365) × 100%.
Savings set aside to cover expenses during vacancies. Aim for 3–6 months of operating costs per property.
Keeping good tenants longer reduces turnover costs. Responsive maintenance, fair rent increases, and good relationships pay off.
List early, use quality photos, and price competitively. Avoid winter move‑ins if your market slows down.
Vacancy costs go beyond lost rent: you still pay mortgage, taxes, insurance, and maybe utilities. Plus turnover expenses – cleaning, repairs, advertising, and showing time.
Example: A $1,500/month rental vacant for one month costs $1,500 lost rent + $500 turnover = $2,000. That's a full month's profit gone. A reserve fund prevents this from becoming a crisis.
See how vacancy affects your cash flow and how much reserve you need.
Adjust the values and click the button.
This simulator estimates your annual vacancy loss and suggests a reserve fund. Your actual numbers may vary. Always keep a cushion!