CalculateRealEstateROI

Risk Management

How should I stress-test for vacancy?

Model 90 days vacant per door per year, then 6 months for one property simultaneously.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Model 90 days vacant per door per year, then 6 months for one property simultaneously.

Expanded explanation

Average vacancy is misleading. Real risk is event vacancy clustering: 2 properties go vacant in the same quarter during slow leasing season.

Examples

  • Portfolio survives 2 simultaneous 90-day vacancies without distress.

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