Vacancy costs can sometimes be hidden when you have hard-to-lease apartments. Sometimes it may surprise you it can be a single unit over and over causing the issue.
By Lori Hammond
Vacancy loss is a key indicator when evaluating property performance.
Vacancy loss and bad debt are two negative adjustments from the Gross Rent Potential.
Attempts to maximize rental income include increasing rents, reducing vacancy and concessions.
There is another factor that lurks inside vacancy loss.
This sneaky indicator is the actual number of days vacant for an apartment. Without looking at days vacant list or report, it might go unnoticed that the same apartment has been vacant for an extended period of time.
Given the size of a property, it's expected there will always be some vacant apartments.