How important is vacancy rate, and how do you find it?

[Chris G.]

When buying houses to buy&hold as rentals, how important is vacancy rate to you guys and how do you figure out what the vacancy rate for an area is anyhow? What size area around the property do you care about in terms of vacancy rate?

Does it really matter all that much, or will lowering rental price get you some one in there no matter what (and you bought @ price considering the lowest you might have to go on rent)

[Chuck H.]

Chris,

I think vacancy rates are very important. I feel it is the most overlooked expense by new investors. The problem with a vacancy is it's a double whammy. You are not getting rent, and you are paying to clean it up and get ready for tne next tenants. Not to mention all the other problems (frozen pipes, vandalism, squaters, etc.)

One good way to measure vacancy rates is to watch when another For Rent sign goes and up in your farm area and count how many days it stays vacant.