Stashing away for Vacancy. Does it actually matter?

[Tyreek King-El]

Does stashing away for vacancy really mean anything? The idea behind stashing for maintenance and Cap-Ex make sense, but for vacancy, say you start out with a new rental, and you put away 3-5% for vacancy per month. Let's imagine you're rented out for a full two years before you hit a month of vacancy, that whole stash is wiped out with pretty much one month's mortgage payment. The same doesn't feel true for a clogged toilet, or a broken garbage disposal. Does it really matter? Should you just get loss of rental income worked into your insurance policy?