The Surprising Way Real Estate Bleeds Cash Monthly
Vacancy Costs
Vacancies are another often-overlooked cost in real estate investments. When a property is vacant, you're not only losing rental income but still covering mortgage payments, taxes, and insurance. The longer a property remains unoccupied, the more it impacts your cash flow. The U.S. Census Bureau reported that the rental vacancy rate was 5.8% in the second quarter of 20233, highlighting the potential for periods without tenants.