Vacancy risk is the quiet cost that can turn an attractive rental property into a stressful investment. A property does not need to be empty for long to affect cash flow, especially when instalments, maintenance fees and repairs continue.
Model empty months before buying
Instead of assuming twelve months of rent, model one to two vacant months and a realistic repair budget. This gives a better view of downside cash flow.
Use PropGo's rental yield calculator to compare gross and net yield, then test whether the property still works after vacancy and maintenance cost.
Check tenant demand drivers
Tenant demand comes from access, jobs, schools, universities, hospitals, amenities, security and building management. Cheap entry price is not enough if the tenant pool is thin.
If holding cost is becoming heavy, use the PropGo refinance savings calculator to evaluate whether refinancing assumptions are worth discussing with a bank.
FAQ
How much vacancy should landlords assume?
It depends on market and property type, but investors should model at least a conservative vacancy buffer before buying.
Can high rental yield hide vacancy risk?
Yes. A high advertised yield may ignore empty months, repairs, furnishing, agency fees and tenant turnover.
