Mid Term Market
Is there an average math calculation folks are using to determine the vacancy rate for this strategy yet. I know folks use 5% for LTR - keen to know whats happening with this new market?
Hey Damian,
I would use 15% as an average for vacancy on MTR when doing calculations. The truth is this: You have plenty of time to find the next tenant and ideally, you will have done all the necessary repairs ahead of time to make the property "rent ready", so you will not need to do repairs in between tenants.
I think 15% is VERY conservative. I am doing an MTR coming soon in 2023 and my property manager has 100% occupancy, no issues at all. It also depends on the market you are in... I am in Charlotte, NC and its white hot here with real estate in general.
I would ask PM's in your area who specialize in that space and get an accurate reading for your region. I wouldn't think St. Pete would have any issues at all with occupancy.
Great Question!
As it happens I am looking out of state in NC
Quote from @Jon Puente:
Hey Damian,
I would use 15% as an average for vacancy on MTR when doing calculations. The truth is this: You have plenty of time to find the next tenant and ideally, you will have done all the necessary repairs ahead of time to make the property "rent ready", so you will not need to do repairs in between tenants.
I think 15% is VERY conservative. I am doing an MTR coming soon in 2023 and my property manager has 100% occupancy, no issues at all. It also depends on the market you are in... I am in Charlotte, NC and its white hot here with real estate in general.
I would ask PM's in your area who specialize in that space and get an accurate reading for your region. I wouldn't think St. Pete would have any issues at all with occupancy.
Great Question!
