Vacancy Rate Calculator
Calculate the financial impact of vacancy on your rental income, including marketing and turnover costs.
Results
Visualization
How It Works
Vacancy is one of the biggest expenses for rental property owners. Even a few weeks of vacancy per year can cost thousands in lost rent plus marketing and turnover expenses.
The Formula
Variables
- Vacancy Weeks — Expected weeks per year the unit is unoccupied
- Turnover Cost — Cleaning, repairs, and make-ready expenses between tenants
- Effective Occupancy — Percentage of the year the unit generates income
Worked Example
$2,000/month rent with 4 weeks vacancy: Lost rent = $1,846. Marketing = $200. Turnover = $500. Total cost = $2,546/year. Effective occupancy = 92.3%.
Practical Tips
- The national average vacancy rate is about 5-8% (2.5-4 weeks/year).
- Screen tenants carefully — a bad tenant costs more than an extra week of vacancy.
- Offer lease renewal incentives to reduce turnover.
- Price your rent competitively to minimize vacancy duration.
- Keep units in good condition — well-maintained properties rent faster.
Frequently Asked Questions
What is a normal vacancy rate?
5-8% nationally (2.5-4 weeks/year). Urban areas may be lower (3-5%), while rural areas can be higher (8-12%). Check your local market.
How do I reduce vacancy?
Price competitively, maintain the property well, screen tenants for long-term stays, offer renewal incentives, and start marketing 60 days before lease ends.
Should I lower rent to avoid vacancy?
Often yes. A $100/month rent reduction costs $1,200/year but avoids $2,000+ in vacancy costs. Run the numbers for your situation.
What are typical turnover costs?
Professional cleaning ($200-500), paint touch-ups ($200-800), minor repairs ($100-500), carpet cleaning ($150-300). Total: $500-2,000 per turnover.
How do I account for vacancy in my investment analysis?
Always subtract 5-10% from gross rent for vacancy in your projections. Never assume 100% occupancy.