This cuts down on showings and may lead to longer vacancies - which costs an investor money.

They don't build a proper reserve, failing to account for turnover costs, vacancies, capex, etc.

This is NOT passive, it requires you to create systems and deal with all the complexities that a business entails.Reasons to manage your own properties: 1.You are an effective manager and for the most part enjoy people. 2.You want to reduce vacancy and expenses (after the property has been repaired my vacancy rate is below 2%).3.You want to start your own business and instill a certain “culture” at your properties.

Much more negative when including realistic expense estimates (maintenance/cap ex, vacancy, PM, misc).  

Otherwise, weigh your options with estimated vacancy and remodeling time, but how you may be able to mitigate losses longer-term with the higher rents you'll presumably be able to collect with new tenants. 

First, you would need to subtract allowances for repairs and vacancies (a necessary prediction).

My house has no vacancies and other guys are constantly calling and inquiring about rooms available. 

My question is what type of lease terms work best to minimize vacancy and minimize the need to continually ask current tenants if they are planning on extending / renewing a lease. 

This covers the vacancy time and work supplied to find a new tenant.

I have a vacancy in a great part of town and it is sitting.