Vacancy (neobsazenost)
The time when a let property has no tenant and earns no rent: between tenancies, during renovation or while a new tenant is sought. The vacancy rate is expressed as the share of lost rent in the potential annual rent. During vacancy the owner still pays the repair fund, service advances, insurance and the mortgage.
Example
A 1+kk flat let for CZK 18,000 stands empty for one month a year: a vacancy rate of 8.3 %, a loss of CZK 18,000. The gross yield on a price of CZK 4,500,000 thus drops from 4.8 % to 4.4 %. Meanwhile the mortgage payment of CZK 18,415 (CZK 3,150,000 at 5.00 %, 25 years) continues, entirely from salary.
In practice
A well-prepared flat, a realistic rent and a notice period timed to the arrival of the next tenant (viewings already during the notice period) all shorten vacancy. With short-term rentals the swings are much bigger and seasonal. A yield calculation that assumes rent for 12 months a year, with no reserve for the payments, is too optimistic.
How it differs
An empty flat and a tenant who doesn't pay are different risks: the second is a credit risk covered by the security deposit (kauce). Occupancy in short-term rental is measured in nights, not months, and fluctuates with the season and competitors' prices.
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