Property Management
A 'vacancy factor' in a property's pro forma financial analysis accounts for:
AA. The cost to renovate vacant units
BB. Expected income lost due to vacant units and collection losses✓ Correct
CC. The number of units currently vacant
DD. The time required to fill vacancies
Explanation
A vacancy and collection loss factor (typically 5-10% of PGI) accounts for expected income lost due to unoccupied units and uncollected rent. It is deducted from Potential Gross Income to arrive at Effective Gross Income in the income approach.
Related Georgia Property Management Questions
- In Georgia, a property manager who collects rents and security deposits for others must:
- A property manager who signs lease agreements must hold at minimum a:
- Which of the following would NOT be considered a legitimate deduction from a tenant's security deposit in Georgia?
- An apartment complex with 200 units has 15 vacant units. The annual per-unit rent is $14,400. What is the annual income lost to vacancy?
- In Georgia, a landlord who accepts rent after serving a notice to vacate for nonpayment:
- A tenant who is constructively evicted may have the right to:
- Under Georgia law, a landlord who enters a rental unit without notice or consent of the tenant may be liable for:
- Under Georgia's landlord-tenant law, a landlord's duty to maintain habitable rental premises means the property must:
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →