Vacancy Rate 101 : The Hidden Revenue Leak in Your Property Portfolio
Vacancy rate isn’t just a metric. It’s a direct measure of how efficiently your portfolio makes money.

Formula:
(Vacant Units ÷ Total Units) × 100

For large portfolios, even a 1% increase can mean hundreds of thousands in lost revenue.

Why it matters:
• Impacts revenue per door
• Signals leasing & turnover inefficiencies
• Drives Days on Market (DOM)
• Increases cost per unit

Pro tip:
Track vacancy by days, not just units, for a true picture of lost income. Smart operators don’t just track vacancy they optimize speed-to-lease.

The 1% Rule in Real Estate (Quick Investor Check)

Before going deep into numbers, I always start here. If a property costs $200,000, can it realistically rent for $2,000/month? That’s the 1% rule a fast way to screen rental deals.

Helps spot potential cash flow
Doesn’t include maintenance, taxes, or vacancies
Must be matched with local rent data (especially in Türkiye)

Think of it as a filter, not a decision-maker. Simple rules save time. Local knowledge makes money.

Real estate investing goes beyond buying property. One powerful option is Real Estate Operating Companies (REOCs). REOCs are publicly traded companies that invest in and manage commercial real estate such as offices, hotels, retail spaces, and multifamily buildings. Unlike REITs, REOCs reinvest profits back into the business, focusing on long-term growth rather than regular dividend payouts.

Key difference:
• REOCs: Growth-driven, flexible strategy, higher corporate taxes
• REITs: Income-focused, must distribute 90% of earnings, tax-efficient

Bottom line:
REOCs suit investors seeking capital appreciation, while REITs appeal to those prioritizing stable income. Choosing the right structure depends on your investment goals and risk appetite.