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Rent Roll Vacancy Gap Calculator

Gross potential rent is what the building could produce if every unit were at market and every tenant paid on time. Reality is always lower. This calculator drills the gap into six separate leakages — loss-to-lease, physical vacancy, turn downtime, concessions, bad debt, and non-revenue units — so you can see which one is actually hurting.

Total units

Market rent per unit

In-place rent per unit (avg)

Rent roll average

Physical vacancy %

Avg downtime between leases (days)

Unit turnover / year %

Avg concession per new lease (months)

Bad-debt / collection loss %

Model / down units %

Model, employee, offline

Total vacancy & leakage gap

$100,915

Economic occupancy

79.69%

Effective gross income

$395,885

Gross market potential

$496,800

Loss-to-lease (below market)

$41,760

Physical vacancy loss

$27,302

Turn / downtime loss

$11,945

Concession loss

$8,532

Bad debt loss

$9,101

Model / down unit loss

$2,275

Gap % of market

20.31%

How the math works

The rent roll shows scheduled rent, but actual collections are always lower by six distinct leakages: loss-to-lease (below-market rents), physical vacancy, turn downtime, concessions, bad debt, and non-revenue units (model, employee, down). This calculator rolls all six into a single economic-occupancy number. Strong operators run 92-95%, mediocre properties 85-90%, distressed sub-80%.

Underwriters stress-test each leakage separately because mixing them hides problems. A property at 96% physical occupancy with 12% bad debt has the same EGI as one at 88% occupancy with 0% bad debt — but the second is far easier to fix through marketing. Always break the gap apart so your value-add thesis targets the actual weakness.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Rent Roll Vacancy Gap Calculator is built to give a quick, browser-based estimate for rent roll vacancy gap. Gross potential rent is what the building could produce if every unit were at market and every tenant paid on time. Reality is always lower. This calculator drills the gap into six separate leakages — loss-to-lease, physical vacancy, turn downtime, concessions, bad debt, and non-revenue units — so you can see which one is actually hurting. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the rent roll vacancy gap result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this rent roll vacancy gap estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter unit count, market rent, and your in-place rent roll average.
Set physical vacancy rate from your operations report.
Estimate downtime (days) between leases and annual turnover rate.
Add average concession (free rent months) given to new tenants.
Estimate bad-debt / collection loss from your A/R aging.
Include model, employee, or permanently down units.

Frequently Asked Questions

What's loss-to-lease?

The difference between market rent and your in-place rent roll. If market is $1,800 and your average tenant pays $1,650, you have $150/month/unit of loss-to-lease. It's the single largest leakage at most stabilized properties and the primary lever in a value-add business plan.

What's a good economic occupancy?

Class-A urban: 93-96%. Class-B garden: 90-93%. Class-C / workforce: 85-90%. Anything below 85% suggests one of the six leakages is broken — usually bad debt, rarely marketing. Top-quartile operators run 95-97% sustained.

How does this differ from physical occupancy?

Physical occupancy only measures 'is the unit rented?' Economic occupancy measures 'is the unit paying market rent in full?' A 98% physical but 85% economic property has a massive hidden problem — usually concession burn-off plus bad debt.

What should I attack first?

Look at the biggest leakage. If loss-to-lease dominates, it's a renewal/turn strategy problem. If bad debt dominates, tighten screening. If concessions dominate, your marketing is weak — raise asking, cut concession. If downtime dominates, fix the make-ready process. Vacancy is rarely the actual problem.