Why Do We Account for Vacancies?

[Corwin Hernandez]

Hi guys, I have been listening to the podcast and trying to learn so I can get started and I'm not sure when but I will definitely be getting into buy and holds at some point in time. I don't think I have heard anyone say why you put money away for vacancies. From what I've learned, you should generally put 50% away for expenses, and have the rest of the rent should pay for the mortgage. I like Brandon Turner's minimum of $100 per unit. Why is vacancy something we account for? I'm sure this is a newbie question but from my point of view, there is no utilities to pay for. I am also looking into a smaller multi family property and to finance it with a FHA loan