Property Management

Vacancy rate for a rental property is calculated as:

A(Occupied Units ÷ Total Units) × 100
B(Vacant Units ÷ Total Units) × 100
C(Monthly Rent Lost ÷ Annual Potential Income) × 100
DBoth B and C are correct methods✓ Correct

Explanation

Vacancy rate can be calculated as the percentage of units that are vacant (B) or as the percentage of potential income lost to vacancy (C). Both methods are valid, though the income-based method (C) is more common in income-property appraisal.

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