Property Management
What is 'vacancy rate' and how does it affect property value?
AThe percentage of time a property is for sale; higher vacancy rate means lower value
BThe percentage of rental units that are unoccupied; higher vacancy rates reduce effective gross income and thus property value✓ Correct
CThe number of vacant lots surrounding a property
DThe rate at which a property owner vacates their own home
Explanation
Vacancy rate measures the percentage of rental units that are empty and not generating income. A higher vacancy rate reduces effective gross income (and thus NOI), which lowers property value under the income approach. Investors closely monitor vacancy rates when evaluating rental properties.
Related California Property Management Questions
- Which of the following is NOT a protected class under the California Fair Employment and Housing Act (FEHA) as it applies to housing?
- What is a 'holdover tenant'?
- Under California's AB 1482 (Tenant Protection Act of 2019), which properties are exempt from statewide rent cap provisions?
- In California, a landlord must return a security deposit within how many days of a tenant moving out?
- What is a gross lease?
- What does the term 'gross lease' mean in a commercial property management context?
- Which federal law prohibits housing discrimination based on race, color, national origin, religion, sex, familial status, and disability in the rental of residential property?
- Under California law, what is the maximum security deposit a landlord may collect from an unfurnished residential tenant?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →