Size a cash reserve around a scenario, not a feeling.
01Averages reassure. Timing decides.
Vacancy spread over several years may look small on average. But it is not a small regular deduction: some months simply generate no rent while bills keep arriving.
Show both average income and the stressed year. These are not competing forecasts but two useful views of the same risk.
02An example you can recalculate
At an assumed €1,000 monthly rent, two vacant months remove €2,000 from theoretical annual income. If other costs and loan payments stay the same, the loss hits cash flow.
State whether vacancy is already allowed for in expenses. Counting it again as rent-free months would duplicate it. Choose a convention and keep it throughout.
03Test without predicting
Try one, two and three months without rent. Add a cost increase separately. The goal is not a forecast but to see what your situation can absorb.
An adverse scenario does not rule out an investment. It shows the potential effort so you can decide before committing.
04Prepare your response
Write the reserve amount, its source and the expenses it must cover. Capital reserved for works cannot also cover every other difficulty.
Revisit this note when assumptions change. Useful discipline withstands enthusiasm.
Gather the documents before drawing conclusions. These educational materials do not replace a professional’s individual assessment.
Open the practical tools
