Vacancy cost calculator

Owners feel vacancy as "no rent this month." The real number also includes utilities, make-ready and marketing. Show the owner the per-day cost when you need a decision on price or on a small repair that could get the unit leased sooner.

How the math works

1. Daily rent = monthly rent x 12 / 365. Using 365 days instead of 30 avoids overstating short months.
2. Rent lost = daily rent x days vacant.
3. Utilities while vacant = utilities per day x days vacant. Include water, power, gas, trash and lawn care the owner pays while the unit is empty.
4. Total = rent lost + utilities + make-ready + marketing and leasing costs.
5. The "7 days saved" line shows what one week less of vacancy is worth, which is the number to put next to any proposed price cut.

How to use the result

Run it before every pricing conversation. If the owner is holding out for $50 more a month, compare $600 a year of extra rent against what two or three more vacant weeks cost. It also helps decide whether a make-ready item is worth doing: if a $400 fix is likely to shorten vacancy by a week, compare the $400 with the 7 days saved line.

Questions

Should vacancy cost include the leasing fee?

Yes, if the owner pays it for each new tenant. It is a direct cost of the turnover, so it belongs in the total.

Why does daily rent use 365 days?

Monthly rent times 12 gives yearly rent, and dividing by 365 gives a daily figure that is the same every month. Dividing by 30 slightly overstates the cost in 31-day months and understates it in February.

What counts as a vacant day?

Every day between the old tenant returning keys and the new lease start date, including make-ready days.