The Vacancy Math Most San Diego Landlords Get Wrong

Drive through almost any San Diego neighborhood and you will see it: a For Rent sign that has been up for weeks. Often, it is not a bad property. It is priced like the best one on the block.

It makes sense on the surface. Ask a little more, and you earn a little more every month for the whole lease. But that logic skips the most expensive number in the equation: the days your rental sits empty.

Here is the math most landlords never run.

A home that rents for $4,000 a month earns about $130 a day. List it $150 above the market, and you stand to gain $1,800 over a 12-month lease. If that higher price adds just two weeks of vacancy, you have already given it all back. If it adds a month, you are down over $2,000 before a tenant ever moves in.

Here is how to keep the vacancy math working for you:

Price for the First Two Weeks. A new rental gets its most attention in its first days online. That is when the best-qualified applicants are looking. Price it to compete from day one, not to test the market.

Every Day Empty Is a Day You Pay. The mortgage, the HOA, insurance, and utilities do not pause while you wait for the right tenant. Count those costs before you hold out for a higher rent.

Adjust Early, Not Late. If showings are slow in the first week, the market is already telling you something. A small adjustment in week two costs far less than a large one in week six.

The market is fair, but it is not forgiving. The landlords who come out ahead are not the ones who ask the most. They are the ones who get a qualified tenant in the door the fastest.

Next week, I am going to share the "Rental Comp Check" and how to price your rental based on what actually leased nearby, not just what is listed.