Most landlords understand that vacancy means lost rent. But the true cost of a vacant property goes far beyond the missed weekly payment. When you add up all the hidden costs, even a single extra week of vacancy can have a significant impact on your annual returns.
The Real Numbers
Let's look at a typical Hills District investment property renting for $900 per week. Here's what each week of vacancy actually costs you:
Weekly Cost of Vacancy — $900/wk Property
Note: During vacancy, you're not only losing the $900 rent — you're still paying all holding costs. The true cost is the rent you're missing PLUS the expenses you're still paying.
That means every extra week of vacancy costs you approximately $2,380 in total. Over four weeks, that's $9,520. For context, that's more than most landlords pay in annual management fees.
Key insight: Reducing your vacancy by just one week per year is worth more than saving 1% on management fees. The cheapest property manager is rarely the most cost-effective.
The Annual Impact
Let's compare two scenarios for the same $900/week property over a year:
Scenario A: 1 Week Vacancy
- Annual rent: $45,900 (51 weeks)
- Vacancy cost: $900
- Effective yield: 97.8%
Scenario B: 4 Weeks Vacancy
- Annual rent: $43,200 (48 weeks)
- Vacancy cost: $3,600
- Effective yield: 92.3%
The difference? $2,700 in lost rent alone. Add the holding costs you're still paying during those extra three weeks, and the gap widens to over $7,000.
How to Minimise Vacancy
At New Vision, our average time to lease is approximately 7 days — well below the market average. Here's how we achieve this:
1. Start Marketing Early
We begin marketing your property as soon as the current tenant gives notice — typically 2–4 weeks before they vacate. This means we often have a new tenant approved and ready to move in within days of the property becoming available.
2. Professional Photography and Virtual Tours
Properties with professional photos receive 3–5 times more enquiries. Our Matterport 360 virtual tours allow interstate and overseas tenants to inspect remotely, widening your tenant pool significantly.
3. Price It Right
Overpricing is the number one cause of extended vacancy. We use real-time market data to price your property competitively from day one. A property priced $20/week too high that sits vacant for an extra two weeks costs you $1,800 — far more than the $1,040 you'd "save" over a year at the higher rent.
4. Retain Good Tenants
The best way to avoid vacancy is to keep your current tenant happy. Responsive maintenance, fair rent reviews, and professional communication all contribute to tenant retention. Our proactive lease renewal process — starting 70–80 days before expiry — ensures continuity wherever possible.
5. Maintain Your Property
A well-maintained property attracts tenants faster and at a higher rent. Properties that look tired, have outstanding maintenance issues, or feel neglected will sit on the market longer. Investing in presentation before listing pays for itself many times over.
Tired of Extended Vacancies?
Our average time to lease is ~7 days. Find out what your property could earn with New Vision.
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