Rental Vacancy Cost Calculator
Calculate the true total cost of vacancy including lost rent, tenant acquisition, turnover expenses, carrying costs, and opportunity cost for landlords.
Results
Visualization
How It Works
The true cost of vacancy goes far beyond lost rent. Landlords must continue paying mortgage, taxes, insurance, and HOA during vacancy, plus spend on marketing, cleaning, repairs, and possibly leasing agent fees. A single month of vacancy on a $2,000/month rental can easily cost $4,000-6,000 when all factors are included.
The Formula
Variables
- Lost Rent — Rent income foregone during the vacant period
- Carrying Costs — Mortgage, taxes, insurance, and HOA that continue during vacancy
- Turnover Costs — Cleaning, painting, repairs, and make-ready expenses between tenants
- Acquisition Costs — Marketing, listing fees, and leasing agent commissions to find a new tenant
Worked Example
$2,000/month rent, 30-day vacancy: Lost rent = $2,000. Repairs = $1,200. Marketing + agent (50%) = $1,350. Carrying costs (mortgage $1,400 + fixed $450) = $1,850. Total = $6,400. That equals 26.7% of annual rent wiped out by one turnover.
Practical Tips
- Every day of vacancy costs you the daily rent PLUS daily carrying costs. For a $2,000/month unit with $1,850 in monthly fixed costs, that is $128/day.
- Reducing vacancy by even 5 days saves $500+ per turnover. Start marketing 60 days before lease end.
- Tenant retention is the cheapest strategy. A $50/month rent concession costs $600/year but avoids a $5,000+ turnover.
- Budget 5-8% of gross rent annually for vacancy and turnover even with great tenants.
- Screen thoroughly — evicting a bad tenant creates 2-3 months of vacancy plus legal costs.
Frequently Asked Questions
What is the average vacancy period between tenants?
Nationally, 2-4 weeks is average for a well-priced unit in a decent market. In hot markets it can be under a week; in weak markets, 1-3 months. The time includes notice period, make-ready, marketing, and move-in scheduling.
How much does tenant turnover actually cost?
A conservative estimate for a $2,000/month rental is $4,000-7,000 per turnover including lost rent, repairs, marketing, and carrying costs. BiggerPockets estimates the average at 1-3 months of total rent.
Should I lower rent to avoid vacancy?
Often yes. A $100/month reduction costs $1,200/year but can eliminate a $5,000+ vacancy event. Calculate the break-even: if your total vacancy cost is $5,000 and the reduction fills the unit faster, the math usually favors the lower rent.
How do I reduce turnover costs?
Focus on tenant retention (fair treatment, responsive maintenance, competitive renewal rates), maintain units proactively to avoid big make-ready costs, and keep a preferred vendor list for fast, cost-effective turnovers.
What carrying costs continue during vacancy?
Mortgage principal and interest, property taxes, homeowner's insurance, HOA fees, utilities (you may need to keep water/electric on), landscaping, and any recurring services. These costs do not stop when rent income does.