Vacancy Reserve

Reserve for months the unit sits empty — default 8% of gross rent.

Definition

No property is 100% occupied forever. Between tenants you have turnover, make-ready work, and marketing time. The vacancy reserve deducts a percentage of gross rent upfront so your cashflow projection accounts for this reality. Kaison defaults to 8%, which is conservative for most US markets.

Formula

Vacancy Loss = Gross Rent × vacancy_reserve_pct (default 8%)

How Kaison Uses This

Configurable per deal via operating_expenses.vacancy_reserve_pct. Default 0.08.

Example

$1,650 × 8% = $132/mo vacancy reserve

Pro Tip

College towns and seasonal markets may need 10-12%. Strong rental markets can justify 5-6%.

Related Terms

Gross Monthly Rent

Total rent collected before any deductions or reserves.

Effective Gross Income (EGI)

Gross rent minus vacancy — the realistic income baseline.

Educational content only. Consult a CPA or attorney for advice specific to your situation.