Vacancy loss: what an empty house really costs you (with a calculator)

Every landlord knows an empty house earns nothing. Few landlords know the full figure. Your real vacancy cost as a landlord is the rent you lose, plus the bills you keep paying, plus the money you spend getting the unit ready again. This guide gives you a simple calculator and worked examples using real rents from ISHI Homes, so you can put a number on your own empty units.

Why vacancy loss is bigger than you think

When a tenant moves out, three kinds of cost start at once:

• Lost rent - the income you would have earned if the unit was occupied.
• Holding costs - bills you still pay while the unit is empty, such as security, water standing charges, electricity for common areas, service charge or loan repayments.
• Turnover costs - money spent to get the unit ready and find a new tenant, such as cleaning, painting, repairs, advertising and agent fees.

A note on deposits: a deposit is the tenant's money held as security against damage or unpaid rent. It is usually refundable, so do not count it as income that covers your vacancy.

The vacancy cost calculator

You only need a pen, or your phone calculator.

Step 1: Daily rent Daily rent = Monthly rent ÷ 30

Step 2: Lost rent Lost rent = Daily rent × Days empty

Step 3: Holding costs Add up what you pay each month on the empty unit, then divide by 30 and multiply by days empty.

Step 4: Turnover costs Add cleaning, painting, repairs, marketing and any agent fee.

Total vacancy cost = Lost rent + Holding costs + Turnover costs

To see how much of your year this eats up:

Share of yearly rent lost = Total vacancy cost ÷ (Monthly rent × 12)

The holding and turnover amounts in the examples below are made up to show the method. Use your own figures.

Worked example 1: a bedsitter in Kahawa Wendani

On ISHI Homes, the median rent for a bedsitter in Kahawa Wendani is KES 8,500 a month, as of 26 Oct 2026. (The median is the middle figure when all rents are lined up from lowest to highest.)

Say the unit stays empty for 45 days.

Item	Working	Amount
Daily rent	8,500 ÷ 30	KES 283
Lost rent	283 × 45 days	KES 12,750
Holding costs	example	KES 1,500
Turnover costs	cleaning and touch-up paint, example	KES 6,000
Total		KES 20,250

That is more than two months of rent gone on one move-out. On a yearly rent of KES 102,000, you have lost about 20%.

Worked example 2: a 2 bedroom apartment

Across all areas on ISHI Homes, the median rent for a 2 bedroom apartment is KES 28,000 a month, as of 26 Oct 2026.

Say it sits empty for 60 days and needs a full repaint.

Item	Working	Amount
Lost rent	28,000 × 2 months	KES 56,000
Holding costs	KES 3,000 a month × 2, example	KES 6,000
Turnover costs	repaint and repairs, example	KES 15,000
Total		KES 77,000

Yearly rent is KES 336,000, so this one vacancy costs about 23% of the year's income. Cut the empty time to 15 days and lost rent drops to KES 14,000.

Worked example 3: holding out for higher rent in Kilimani

This is where many landlords lose money without noticing.

On ISHI Homes, the median rent for a 2 bedroom apartment in Kilimani is KES 71,500 a month, as of 26 Oct 2026. Say you want KES 75,000 instead, and asking the higher price keeps the unit empty one extra month.

• Extra rent you hope to gain: KES 3,500 a month
• Rent lost from one extra empty month: KES 75,000

Break-even months = Rent lost from extra vacancy ÷ Extra monthly rent

75,000 ÷ 3,500 = about 21 months.

The tenant would need to stay almost two years just for you to get back to where you would have been at KES 71,500. If they leave sooner, you lose. Before you push the rent up, run this check.

Worked example 4: a block of 1 bedroom units

For agencies and landlords with many units, small delays add up.

On ISHI Homes, the median rent for a 1 bedroom apartment in Roysambu is KES 18,250 a month, as of 26 Oct 2026. Say you manage a block where 6 tenants move out in a year.

Average days empty per move-out	Lost rent per move-out	Lost rent for 6 move-outs
30 days	KES 18,250	KES 109,500
10 days	KES 6,083	KES 36,500

Cutting empty time from 30 days to 10 saves about KES 73,000 a year in rent alone, before you count holding costs.

Quick reference: what one empty day costs

Using ISHI Homes median rents across all areas, as of 26 Oct 2026:

Unit type	Median rent	Cost per empty day	Cost per empty week
Bedsitter	KES 8,500	KES 283	KES 1,983
1 bedroom apartment	KES 15,750	KES 525	KES 3,675
2 bedroom apartment	KES 28,000	KES 933	KES 6,533
3 bedroom house	KES 45,000	KES 1,500	KES 10,500

The 3 bedroom house figure comes from a single listing, so treat it as a rough guide.

How to cut your vacancy cost

Start before the tenant leaves

• Begin advertising as soon as you get notice to vacate.
• Ask the outgoing tenant if you can show the unit, with fair warning.

Get the unit ready fast

• Inspect in the notice period so you know what repairs are needed.
• Line up your painter, plumber and cleaner in advance.

Price it right

• Compare your rent with similar units nearby. Run the break-even check above before asking more.
• A fair price that fills in a week often beats a high price that sits for a month.

Market it well

• Take clear, bright photos of every room.
• List the details tenants ask about: water, parking, security, distance to the main road.

Screen quickly but properly

• Have a simple checklist: ID, proof of income, a previous landlord's contact.
• A bad tenant can cost more than a few extra empty days, so do not skip checks.

Keep good tenants

• The cheapest vacancy is the one that never happens. Fix problems quickly, communicate clearly and be reasonable on renewals.

Track your vacancy numbers

You cannot reduce what you do not measure. For each unit, keep a record of the move-out date, the move-in date of the next tenant, and what you spent in between. After a year you will see which units stay empty longest and why.

See ISHI in action

ISHI helps landlords and agencies keep track of units, tenants and rent in one place, and you can list vacant units on ISHI Homes to reach people looking for a house in Nairobi and its commuter towns. Book a free demo at www.ishi.digital/contact, call 0116888777 or email hello@ishi.digital.