How to use this calculator
- Enter or choose measure vacancy by.
- Enter or choose total units.
- Enter or choose market rent per unit (per month).
- The vacancy rate updates as you type. Use Copy result or Share to keep it.
Method
Physical = Vacant units ÷ Total units; Time-based = Vacant unit-days ÷ (Units × Days); Economic = (Potential rent − Collected rent) ÷ Potential rent; Occupancy = 1 − Vacancy
- Vacant unit-days
- the sum of empty days across all units
- Potential rent
- rent at market rates with every unit let for the whole period
Worked example
- Vacancy = 2 ÷ 20 = 10%; occupancy = 90%.
- Rent lost each month = 2 × 1,500 = 3,000.
With 2 of 20 units empty, physical vacancy is 10% and the building loses 3,000 of rent a month.
What the result means
Economic vacancy is usually higher than physical vacancy because it also captures concessions, discounts and unpaid rent. Use it in income forecasts; use physical vacancy to track leasing activity.
Assumptions and limits
- For the units method, rent lost is monthly; for unit-days it is for the period, at 12 months’ rent ÷ 365 per day.
- Units of different sizes and rents are treated alike in the physical and unit-days methods.
Questions
Which vacancy rate should I use in a pro forma?
An economic vacancy and credit-loss allowance, based on the property’s history or local market data, because that is what reduces income.
Is a unit under renovation vacant?
For physical vacancy, yes. Some owners report it separately as “down” units; be consistent across periods.