What Is A Vacancy Rate & Why Is It Important?
The vacancy rate is a simple ratio commercial real estate or multi-family residential owners use to measure vacancies available in their property. Tenant turnover is primarily responsible for your building vacancy rate and can destroy profitability, costing landlords thousands of dollars each month. Therefore, avoiding rental property vacancy should be a goal for all independent real estate owners.
Why is the Vacancy Rate Important?
The vacancy rate is important because if the vacancy rate in your market is high, it could suggest that the area is unappealing to potential tenants. In contrast, if your area has a low vacancy rate, there are probably a lot of tenants leasing places to live.