Vacancy Loss & Economic Vacancy Calculator — Rental Property
Calculate your rental property's true economic vacancy — combining physical vacancy days, collection losses, bad debt write-offs, and tenant concessions for accurate NOI.
Physical vs Economic Vacancy
Physical vacancy = days unit was empty / 365. Economic vacancy adds: collection losses (tenant moved out owing rent), bad debt (uncollectable), concessions (1 month free), discounts. Economic vacancy = REAL income lost vs gross potential rent.
Market Benchmark 5-8%
Class A residential: 4-6% economic vacancy typical. Class B/C: 7-12%. Single-family: often <5%. If yours exceeds market, investigate: pricing too high, marketing weak, slow turn process, or tenant screening too tight (too few applicants).
The Hidden Cost
Owners track physical vacancy but miss collection loss. Example: 4% physical + 3% collection loss + 1% bad debt + 2% concessions = 10% economic vacancy. On $30k/year rent that's $3,000 lost — easily $50k in valuation lost at 6% cap rate.
Reduce Economic Vacancy
Faster turns (2-week max between tenants). Tighter screening with backup applicants ready. Online rent payments + auto-pay (cuts collection loss). Use security deposit responsibly (covers most bad debt). Avoid heavy concessions in soft markets.
Source: irem.org property management benchmarks, nahb.org rental survey 2026. Last updated: May 2026.