Property Management

What is 'vacancy rate' in property management and how is it calculated?

AThe number of vacant units divided by total units times 100
BThe percentage of gross potential rent lost to vacant units
CBoth A and B are methods used✓ Correct
DThe number of vacant units minus occupied units

Explanation

Vacancy rate can be expressed as a physical vacancy rate (number of vacant units / total units x 100) or an economic vacancy rate (lost rent from vacant units / potential gross rent x 100). Both methods are used depending on the purpose of the analysis.

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