Property Management

What is a 'vacancy rate' and why does it matter to a Nevada property manager?

AThe percentage of units that have been remodeled in the past year
BThe percentage of total units in a property that are unoccupied and not generating rental income; it directly affects the property's cash flow and investment returns✓ Correct
CThe rate at which tenants leave after eviction proceedings
DA metric used only for commercial properties, not residential

Explanation

Vacancy rate = (unoccupied units ÷ total units) × 100. A property with 100 units and 5 vacant units has a 5% vacancy rate. In Nevada's Las Vegas market, overall vacancy rates fluctuate with economic cycles — the 2008-2012 recession pushed residential vacancies very high. Property managers use vacancy rates to benchmark performance, set rental rates, and project cash flow for owner clients.

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