An allowance or discount for estimated vacancies (unrented units) in a rental project. The vacancy and loss in rent factor is important in assembling an investment income analysis of a property, such as an apartment building.
Annual gross income multiplied by percent vacant (AGI X % VACANCY) Return To Menu
A multiple by which gross monthly rental income is multiplied. The vacancy factor reduces the owner's monthly rental income to allow for months when units are vacant and the owner is not receiving full rental income.
A measurement of gross rental income loss due to vacancy and non-collection of rent. The rate is expressed as a percentage, and is calculated by dividing lost rental income (from vacancy and non-collection) into total potential gross rental income (including income from other rental units and the lost income).... read full article
An allowance or discount for estimate vacancies (unrented units) expressed as a percentage. The ratio between the number of vacant units and the total number of units. Current statistics on vacancy factors can be obtained from the U.S. Census Bureau, regional housing reports published by the Dept. of Commerce and local utility companies.
The percentage of Gross Rental Income that represents vacant units.
The amount of gross revenue that pro forma income statements anticipate will be lost because of vacancies, often expressed as a percentage of the total rentable square footage available in a building or project.
The amount of gross revenue lost because of vacant space, an allowance item on pro forma income statements, usually calculated as a percentage of gross revenue.
The estimated percentage of vacancies in a commercial real estate rental project. May be based on past records of the property, or a professional estimate if a new project. Surrounding area buildings, if similar, may be used for comparison.
The amount of gross revenue anticipated to be lost due to vacancies. Always expressed as a percentage of the total rentable square footage available.
An allowance or discount for estimated vacancies(unrented units) in a rental project. The vacancy rate is the ratio between the number of vacant units and the total number of units in a specified project or area.
With regard to appraisal; it is the process of providing for probable vacancies and bad debts which are deducted from the annual gross income of a property to arrive at an estimate of effective gross income.
Estimated percentage of rental that won't be made because of actual and anticipated vacancies.
