How much should landlords budget for vacancy and repairs?

The short answer

Use 5–8% of rent for vacancy, and pair it with a turnover line — every move-out costs a make-ready and re-leasing, so spread roughly one month's rent across your expected tenancy. For maintenance, skip the flat 1%-of-value rule: repair bills don't scale with price, so budget 2–3% of value on homes under about $150K, roughly 1% above that, with a floor near $2,500 a year — plus a separate capex reserve for roofs and HVAC. If a deal only works with zero vacancy and no repairs, it doesn't work.