Vacancy rates

[Ty Monroe]

What vacancy rate do you feel best with? Lafayette Indiana has as high as 20% and low as 5%

[Michele Fischer]

I use 4% in my planning, plus $3K in turnover costs per year.  Depends on your market, how often people turn, how expensive turns are, how many units you own to spread the risk over, and how much market rent rates go up to help offset these costs.  My occupancy rate varies, but is 96% long term.  The number of move outs per year varies too, $3K covers one costly or two-three average move outs.