Every landlord wants the best return on their investment, and that often means aiming for the highest rent possible. But there’s another side to the equation that can cost even more, vacancy. Even a short period without a tenant can undo months of solid returns.
Why Vacancies Cost More Than You Think
Let’s say your property rents for $750 per week. That’s $3,000 lost if it sits vacant for a month. Even one or two weeks can make a serious dent in your annual return. And it’s not just lost rent. A vacant property still incurs costs like mortgage repayments, rates, insurance, and sometimes maintenance.
In most cases, it’s better to accept a tenant at slightly lower rent than to hold out for a higher price that might take weeks to achieve.
The Real Numbers – $700 with No Vacancy vs $750 with 4 Weeks Empty
Let’s say you’re deciding between listing your property at $700 per week with the likelihood of getting a tenant quickly, or holding out for $750 per week — but it takes a month to secure someone.
$700/week with no vacancy over 12 months = $36,400
$750/week with 4 weeks vacancy = $750 × 48 weeks = $36,000
That’s $400 less per year, even though the weekly rent was higher. And that’s before factoring in any costs during the vacant period like mortgage, rates, or power for viewings.
If your property sits empty for more than 4 weeks, the financial hit gets worse.
Pricing to Match Online Search Behaviour
Most tenants start their search online using filters, especially for price. If your property is listed at $755, and they filter to $750 max, your property won’t even show up. In competitive suburbs or price ranges, that could mean being completely overlooked.
It’s not just about what your property is worth, it’s about where the market is looking. We help our clients hit that sweet spot where the listing is seen, clicked, and acted on.
Setting the Right Rent from the Start
Overpricing is one of the most common causes of extended vacancy. Tenants are watching the market closely, if your property is $50 too high, it might not even get viewed. The key is setting a rent that reflects current demand, comparable listings, and your property’s unique features.
Our team monitors the market weekly and provides data-driven advice to ensure our clients remain competitive without underselling their investment.
The Hidden Costs of a Bad Tenant
Of course, filling a vacancy quickly doesn’t mean rushing the process. A tenant who fails to pay rent or damages the property will cost far more than a short vacancy ever would. That’s why Crockers carries out 17 checks on every tenant application, to reduce risk and ensure long-term success.
How Crockers Minimises Downtime
Our dedicated leasing team works fast. Because we’re not distracted by sales or other services, we focus solely on property management. We market your property professionally, manage enquiries promptly, and conduct viewings regularly to ensure we find the right tenant as quickly as possible.
We also provide guidance on pricing, presentation, and small improvements that can make a big difference in tenant interest.
Final Thoughts
The true cost of a vacant rental property isn’t just a few weeks without income, it’s a missed opportunity to build long-term value and security. With the right pricing, screening, and leasing process, you can keep your property occupied and your returns steady.
