The share of time (or units) a rental sits empty and unpaid.
Even great rentals sit empty between tenants. Underwriting 5–8% vacancy keeps projections honest; a property that only works at 0% vacancy doesn’t work.
Example: 24 vacant days in a year ≈ 6.6% vacancy.
FAQ
What is Vacancy Rate in simple terms?
Even great rentals sit empty between tenants. Underwriting 5–8% vacancy keeps projections honest; a property that only works at 0% vacancy doesn’t work.