What is the vacancy loss factor investors should calculate for rental properties

The full explanation

When calculating net rental income prudent investors should account for ""vacancy loss"" which is the potential income lost when a property sits empty between tenants. A conservative estimate is to deduct the equivalent of one month of rent per year from your calculations. For a property in Dubai South this might be around 5000 dirhams annually. factoring this in ensures your financial projections are realistic and that your cash flow remains positive even if the property is not rented 365 days a year.