When investors analyze rental returns, most focus on rental income and expenses. But there’s one factor that can quietly eat into your profits faster than you think: vacancy.
Even a single month without a tenant can drastically reduce your annual return on investment. For example, if your property rents for $2,000/month and it sits vacant for one month, you've lost 8.3% of your annual income instantly. And that doesn't include the ongoing costs you still have to cover during that time — mortgage, HOA, utilities, maintenance, and insurance.
The Hidden Costs of Vacancy
Opportunity Cost: Money you lose from not having rental income.
Increased Wear and Tear: Empty homes tend to deteriorate faster without regular use and eyes on the property.
Marketing + Turnover Costs: Every time a tenant leaves, you incur costs to clean, repair, and relist the property.
How to Minimize Vacancy Loss
Renewal Incentives: Offer small rent discounts or bonuses to tenants who renew early.
Responsive Management: Happy tenants stay longer. Quick response to issues increases tenant satisfaction.
Strategic Marketing: Don’t wait for the move-out notice. Start advertising at least 30 days prior.
At Cunningham Group, we help property owners maintain steady occupancy and keep their rental income flowing with proactive tenant retention strategies.