Vacancy Rate Impact Calculator

The Hidden Cost of Vacancy

Vacancy is the silent killer of rental property returns. Most investors focus on rent levels but underestimate how much even modest vacancy reduces annual income. A single month of vacancy on a $2,600 rental costs $2,600 -- the equivalent of a 8.3% vacancy rate for the year. When you also factor in the turnover costs (cleaning, touch-up repairs, leasing fees), the true cost of one vacancy cycle is often $3,000-$6,000.

Reducing vacancy from 10% to 5% on a $2,600/month rental adds $1,560 per year in income with zero additional investment. Smart landlords invest in tenant retention -- responsive maintenance, fair rent increases, and good relationships -- because keeping a good tenant costs far less than replacing one. Use this calculator to quantify exactly what your vacancy rate costs you annually, then decide what retention investments are worth making.