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I Noticed You Talk About “Vacancy Cost” Often — What Is That, and How Do I Account for Vacancy Loss?

Vacancy is one of the most underestimated threats to rental investment performance — and in our view, turnover is the single biggest driver of underperformance

when your resident selection process is strong. Every day your home sits empty represents a real, measurable loss that can quietly erode thousands in annual income.

At MoveZen, we treat vacancy as a triple loss:

  1. Lost rental income – no revenue during downtime.

  2. Increased maintenance – unused homes deteriorate faster, especially HVAC and plumbing systems.

  3. Opportunity cost – the time value of lost income that can never be recovered.

Many landlords mistakenly hold out for a higher rent rate, believing it’s worth the wait. In reality, that’s often a lose-lose-lose scenario. Reducing the rate slightly to fill the home faster usually leads to superior net annual income and higher-quality residents. The goal is always to balance rate with speed, not chase every last dollar.

We consider vacancy to be one of the biggest avoidable losses in rental investing. Many landlords hold out for a specific rate, letting a home sit empty in hopes of “getting” more — but in reality, that decision almost always costs far more than it earns.

Reducing the rate slightly often fills the home faster, attracts higher-quality residents, and gets income flowing much earlier in the year. The lost productivity from vacancy has no economic upside for either the landlord or the resident. Worse yet, maintenance issues often increase in unused homes — plumbing dries out, HVAC systems stagnate, and minor issues can quietly escalate. It’s the ultimate lose-lose-lose scenario.

That said, there are strategic reasons for brief vacancy periods. Seasonal timing plays a major role, and in most cases, we don’t want to fill a home too fast — renting within just a few days often indicates underpricing. Finding that balance requires experience, data, and market intuition.

Vacancy cost, or vacancy loss, refers to the financial impact of an unoccupied property — including lost rent, turnover expenses, marketing, utilities, and downtime. Understanding this figure allows investors to evaluate performance with precision.

Reducing vacancy begins with reducing turnover — through strong resident selection, proactive renewals, and competitive, well-presented listings.

👉 Learn how to calculate and reduce the true cost of vacancy: Rental Property Vacancy: Understanding the True Cost