Posted by Sean on July 30, 2001 at 12:28:09:
Where I live the Department of Water & Power publishes vacancy rates by zipcode based on the number of units that don’t have power supplied to them.
Admittedly this isn’t 100% accurate because there are always master-metered apartments out there that won’t show up the vacancies therein.
Planning for vacancies - Posted by Arif
Posted by Arif on July 30, 2001 at 07:55:11:
For you landlords out there. How do you determine the amount to hold in an account for vacancies to pay the mortgage? For instance, if you have a fourplex should you keep 1 months mortgage in the bank or is it a percentage? Thanks as usual.
Re: Planning for vacancies - Posted by David
Posted by David on July 31, 2001 at 11:23:25:
A mortgage broker told me one time that lenders assume, by rule of thumb, actual (annual) rental income at 75% of projected full occupancy income.
Re: Planning for vacancies - Posted by Tom – IN
Posted by Tom – IN on July 31, 2001 at 11:14:36:
Another way is to just try to get every mortgage payment paid a month (or two) in advance.
Re: Planning for vacancies - Posted by Scott
Posted by Scott on July 31, 2001 at 07:35:42:
I have been told that around 8% of your gross rental income each month should away for vacancy backup. This must be done without fail each and every month. Plan it like a bill or expense.
Thats my two cents.
Scott