Property Management
The break-even occupancy rate for a rental property tells the investor:
AThe maximum occupancy rate possible
BThe minimum occupancy needed to cover all operating expenses and debt service✓ Correct
CThe percentage of units that are currently occupied
DThe occupancy rate required for maximum return
Explanation
Break-even occupancy = (Operating Expenses + Debt Service) ÷ Gross Potential Income. It is the minimum occupancy level needed to cover all costs.
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