Vacancy Loss

Glossary

Vacancy loss is rental income not collected because units are vacant. Learn how it affects multifamily revenue and operations.

Definition

Vacancy loss is the rental income a property does not collect because apartment units are physically vacant during a reporting period. It is commonly tracked as dollars or as a percentage of gross potential rent, and it should be kept separate from rent concessions and collection losses. Some vacancy is normal because units need time to transition between residents.

Example

A 200-unit community has gross potential rent of $300,000 for the month. If 8 vacant units would have rented for $1,500 each, the property records $12,000 in vacancy loss, or 4% of gross potential rent.

Why It Matters?

Vacancy loss directly reduces revenue and cash flow, even when demand is strong. Tracking it helps operations leaders understand whether lost income is coming from normal unit turns, extended make-ready timelines, pricing issues, leasing performance, or market conditions.

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Vacancy Rate ›