Vacancy loss is the income that evaporates while a unit sits empty — between tenants, during a renovation, or because it simply has not leased. If a $1,500-a-month unit takes two months to fill, that turnover cost you $3,000 of vacancy loss before you count a dollar of make-ready expense. Expressed as a percentage of gross potential rent, it becomes the vacancy rate that underwriting models lean on.
Two habits keep vacancy loss honest. First, budget for it even when you are full: a realistic allowance in your pro forma acknowledges that turnover happens, and a model with zero vacancy is telling you a story. Second, measure it in days, not vibes — days vacant per turnover is a number you can manage down with faster make-ready, earlier renewal conversations, and pre-marketing before move-out.
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Editorial method reviewed July 28, 2026. Aptoria reviews scope, source fit, examples, limitations, links, and publication gates. This record does not claim attorney, CPA, lender, appraiser, or other independent professional sign-off.
Related terms
Investing metrics
Vacancy rate
The share of rental units — or potential rent — that sits empty and uncollected over a period.
Investing metrics
Gross potential rent (GPR)
The maximum rental income a property could produce with every unit occupied at market rent for the full period.
Investing metrics
Effective gross income (EGI)
Effective gross income is the property income expected after vacancy and collection loss, plus eligible other property income, before operating expenses.
Leasing
Tenant turnover
The full cycle of one tenant moving out and another moving in — and the costs and vacancy that come with it.
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