Property Management
A Mississippi property manager calculates a property's 'breakeven occupancy' at 75%. This means the property breaks even when:
AThree-quarters of the units are occupied at full rent
B75% of all expenses are covered by income
CThe vacancy rate is exactly 25% and income equals all operating and debt service expenses✓ Correct
D25% of income is profit
Explanation
Breakeven occupancy is the occupancy rate at which the property generates just enough income to cover all operating expenses and debt service (mortgage). At 75% occupancy, income exactly equals expenses.
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