Vacancy loss

Calculate lost rent for the same units and period

Record each unit's vacant period and the supported rent assumption for that period. For whole months, multiply vacant months by that unit's monthly rent and add the results across units. State the convention for partial months and changing rents. Keep a dated budget allowance separate from measured results. HUD's rental-income analysis distinguishes full-occupancy earning potential from adjustments for vacancy and collection losses; its program guidance is not a required percentage for every property.

Original simplified example: two units each have a $1,500 monthly rent assumption over four months. Full-occupancy potential rent is 2 × $1,500 × 4 = $12,000. If one unit is vacant for two whole months, vacancy loss is $3,000, or 25% of that period's potential rent. Other income, concessions and unpaid billed rent are excluded from this illustration. A unit count on one date does not capture the duration or differing rents of actual vacancies.

Track time spent preparing the home, advertising, arranging viewings and completing the agreed move-in steps. Review condition, a supported asking rent and accurate availability; respond promptly and apply consistent lawful application criteria. Budget continuing costs and separate turnover work from lost rent. Compare the plan with actual results using the financial-statement guide, avoiding a second vacancy deduction when income already reflects it. Software and marketing may support the work but cannot guarantee occupancy, collected income or a return.