An empty unit costs twice: lost rent for the days vacant plus the make-ready turnover (cleaning, paint, repairs). Summing both gives the true cost of a move-out.
The example
25 days vacant, $1,500 rent, $900 turn.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Lost rent | $1,250 |
| 3 | + $900 turn | → $2,150 |
The formula
The formula:
How it works
How it works:
- Lost rent = days vacant ÷ 30 × monthly rent (the daily rent × vacant days).
- Add the turnover cost — cleaning, paint, repairs, leasing to re-let.
- The total is the real cost of one move-out — often a full month or more.
- Reducing days vacant (faster turns, earlier marketing) is the biggest lever.
Days vacant usually costs more than the make-ready. A $900 turn is a one-time bill, but every vacant day bleeds rent — 25 days at a $1,500 rent is $1,250 gone, and a slow re-let can double that. So the highest-leverage move is shortening vacancy: market before the current tenant leaves, schedule the turn immediately, and price to lease. Retention is even cheaper — the best turnover cost is the one you avoid.
Try it: interactive demo
Days vacant, monthly rent, turnover cost.
Variations
Lost rent only
Vacancy days:
Annualized vacancy %
Of potential:
Cost vs a month of rent
Benchmark:
Pitfalls & errors
Both costs. Lost rent and the make-ready, not just one.
Daily rent basis. Use rent ÷ 30 (or actual days) for the lost-rent part.
Re-let time. Include marketing/leasing days in days vacant.
Practice workbook
Frequently asked questions
How do I calculate vacancy and turnover cost in Excel?
What's the biggest part of the cost?
How do I reduce it?
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