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Updated over 2 years ago on . Most recent reply
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Question about Vacancy Rate Calculation
Ok, I hope I can ask this correctly. I am buying 4 townhomes in Austell, GA. I used this calculator to determine if the property cash flows:
https://www.calculator.net/ren...
As you can see, I did use a 5% vacancy rate and 8% for property management. However, in addition to the 8% a property manager charges, there is also a one months rent fee to get a tenant and a lease renewal fee. Now I am freaking out that I didn't calculate for any of that and so are my calculations wrong? Where and how are you supposed to account for losing an entire months rent to get a tenant? HELP!
Most Popular Reply
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@Michele Velazquez
This is why carrying 12-15% vacancy is typically more accurate on single family - 4 unit properties.
- Chris Seveney
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