An empty apartment feels like a small problem — until you do the maths. For a property company, vacancy is one of the largest and most underestimated costs, precisely because it doesn't show up as an invoice but as missing income. This article shows how to calculate what a vacancy actually costs and why every saved week is worth more than you'd think.
A vacancy costs more than the lost rent
When a unit sits empty you don't just lose the rent. You also keep paying running costs (heating, property management, insurance, interest), marketing and admin for the next let, and in some cases the cost of long idle time before the next move-in. The simplest direct cost is still the lost rent — and it's easy to quantify.
The formula
Lost income: Monthly rent ÷ 30 × number of empty days = lost rent
At portfolio level, use the vacancy rate: (Empty units ÷ total units) × 100 = vacancy rate in %
Worked example
Say a unit rents for SEK 9,000/month and sits empty for two months between tenants:
- Lost rent: 9,000 × 2 = SEK 18,000
- Running costs, say SEK 2,500/month: 2,500 × 2 = SEK 5,000
- Total cost of the vacancy: ~SEK 23,000 for a single unit.
Scale it up: a 50-unit portfolio at just a 4% vacancy rate averages two empty units year-round — over SEK 270,000 per year in lost income and running costs in this example.
What is every saved week worth?
Shaving just one week off idle time per let saves roughly SEK 2,100 per unit here (9,000 ÷ 30 × 7). With high turnover this adds up fast — which is why speed from vacant to signed lease is one of the most profitable things a property company can optimise.
How to reduce vacancy cost
- Start marketing early — ideally when notice comes in, not after move-out.
- Distribute widely — more channels, more applicants, shorter idle time.
- Speed up screening — have a ready process for credit and reference checks.
- Get help when needed — a placement service can fill vacancies with no fixed cost.
With Bofrid's placement service for property companies, verified tenants are forwarded straight to you and you pay only when a forwarded prospect signs — a low-risk way to cut that expensive idle time.
Summary
A vacancy costs lost rent plus running costs and admin — often SEK 20,000–25,000 for a single unit empty for a couple of months. Calculate your own vacancy rate, put a value on every saved week, and invest in what shortens the time from vacant to let. For the letting side, see our complete guide for property companies.
FAQ
What's included in the cost of a vacancy? Mainly the lost rent, but also running costs (heating, management, insurance, interest) and the cost of marketing and screening for the next let.
What's a normal vacancy rate? It varies by location and portfolio, but even a few percent adds up over a year. The point is to measure it and work systematically to lower it.
How do we cut vacancy cost fastest? By shortening idle time: market early, distribute widely and screen fast. A no cure–no pay placement service can fill vacancies with no fixed cost — read more.
