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How will long term vacancies be managed and how will they affect our rental income?

We have budgeted for a 5% vacancy rate. In other words, for the 5 year (60 month) investment period, we are assuming each unit will be vacant for 3 months. 

This has been taken into account for the calculations showing anticipated returns. 

The 15% of rental income that is held back is used in these instances. Periods of vacancy will reduce the income received.

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