Property vacancies cost more than just missed rental income. While a vacant unit loses roughly
$1,000-2,000 monthly in rent, hidden costs can double this figure. Insurance rates often increase for vacant properties, utilities must be maintained to prevent damage, and regular inspections become necessary to deter vandalism.
Marketing costs, cleaning fees, and maintenance between tenants add up quickly. Vacant properties also tend to experience more wear due to lack of regular activity and temperature regulation. The solution lies in proactive tenant retention strategies and efficient turnover processes. Investment in preventive maintenance and quick response to tenant concerns typically costs less than handling extended vacancies.
The key to minimizing vacancy costs is reducing turnover time. Have reliable contractors ready for quick repairs, maintain an active waiting list, and start marketing as soon as notice is received. Consider offering incentives for early lease renewals - even a small rent concession usually costs less than a vacant unit.