[quote=spdrun]The 8.3% vacancy risk assumes that it stays vacant for a month and that the likelihood of the tenant moving out is 100%. Neither of which are likely if the current rent is below market.
Give adequate notice of the rent hike, and you’ll know what the tenant plans to do well in advance, so you can start advertising the place before s/he leaves.[/quote]
Don’t forget about other costs of turnover like paint, extra cleaning, maintenance & repair issues, etc.
