Vacancy Rate
Definition of 'Vacancy Rate'The vacancy rate is a numerical value calculated as the percentage of all available units in a rental property, such as a hotel or apartment complex, that are vacant or unoccupied at a particular time. It is the opposite of the occupancy rate, which is a calculation based on the percentage of units in a rental property that are occupied. |
|
Investopedia explains 'Vacancy Rate'The vacancy rate is a useful metric for evaluating a rental property. High vacancy rates indicate that the property is not renting well; low vacancy rates point to strong rental sales. The vacancy rate and occupancy rate should add up to 100%.Vacancy rates most often represent units that are vacant and ready to be rented, units that have been turned off upon the exit of a tenant and units that are not currently rentable because they are in need of repairs or renovations. |
Related Definitions
Articles Of Interest
-
Tips For The Prospective Landlord
Investing in rental property can generate serious income, but there's more to it than collecting rent. -
Rental Properties: Cash Cow Or Money Pit?
Create a valuation system to forecast the profitability of an income-producing property. -
Sell Your Rental Property For A Profit
Being a landlord can be taxing, especially when you want to sell. Find out how to reduce your burden. -
Easy Ways To Cut Rental Costs
If rent payments are crippling your finances, then read on to learn how to save your money. -
Simple Ways To Invest In Real Estate
Owning property isn't always easy, but there are plenty of perks. Find out how to buy in. -
Vacation Home Or Income-Producing Investment?
There is an alternative to letting your cottage sit empty all year, but turning a profit won't be easy. -
To Rent Or Buy? There's More To It Than Money
Your lifestyle, level of commitment and the trade-offs need to be carefully weighed. -
To Rent Or Buy? The Financial Issues
Thinking of buying a home? We look at the initial and ongoing costs, as well as the so-called benefits. -
The Complete Guide To Becoming A Landlord
Being a landlord can be a fulfilling and financially rewarding experience. However, the decision to become a landlord should not be taken lightly. -
Reasons Renting Is Better Than Buying
Owning a home is much more expensive than renting. Here are the places where the costs differ greatly.
Free Annual Reports