Monthly Vacancy Factor

[Monica Litster]

If I am setting aside 10% each month for a potential vacancy, is that $ just deposited into an acct for months when there is a vacancy and that $ is needed to pay the bills? 10% each month? If you run a duplex, then yes, it could take some months to set those required funds aside. However, with the 16 unit, 10% is more than 1 unit's monthly rent. Total monthly rent when fully occupied is $8700. That is a lot of $ set aside if there are 1 or no vacancy(ies). Am I missing something here?

Thanks,