Lease Downtime Risk Calculator

Vacancy between tenants costs rent plus carry. This calculator sizes downtime loss risk.

Monthly rent

Expected downtime months

Concession months

Reletting costs

Total downtime loss

$90,000

Rent loss

$48,000

Concession value

$24,000

How the math works

Loss = rent × downtime + rent × concession + reletting costs.

Model downtime into pro forma underwriting. A 4-month turn with 2-month concession on a $12k/mo space costs $72k + reletting. Incorporate by asset class; don't use blanket vacancy assumptions.

How to Use

Enter monthly rent.
Enter expected downtime months.
Enter concession period.
Enter reletting costs.
Read total downtime loss.

Frequently Asked Questions

Typical downtime?

Multifamily 30-45 days. Small retail/office 60-120 days. Anchor tenants 180-365 days. Ground-up replacement on class A office can run 2+ years.

Reducing downtime?

Start marketing 90-180 days before known expiry. Pre-stage turn budget. Offer incentives to sign mid-term. Broker relationships for warm handoff deals.

Risk quantification?

Probability × impact. 40% probability of 6-month downtime on a $25k/mo unit = $60k expected loss. Reserve or budget against expected value, not worst case.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.