If I'm looking at a house with a voucher tenant who has the state paying 100% of the rent and the tenant is looking to resign, how much do I allocate for vacancy? Still go with 8% to be conservative or can I drop this to 5%.
In the long run I figured there will be vacancy at some point but wondered about what to allocate when running numbers on it now
Real Estate Agent · Portland, OR · Member since 2016 · 1k+ posts · 605 votes
5y
I would allocate 5% no matter the situation. It is better to have extra money than not enough. The reason you are saving for a vacancy is not for the current tenant, it is for the next one.