Frictional vacancy refers to the short-term, transitional unemployment situation in real estate when properties are vacant due to tenants moving in or out. It represents the natural turnover rate within the market.
The Natural Vacancy Rate is the average vacancy rate for a rental property market that balances supply and demand, serving as a long-term benchmark to evaluate whether current vacancy rates are high or low.
The occupancy rate is a key performance indicator in the real estate industry, representing the percentage of currently rented or occupied units in a building, neighborhood, or complex. A high occupancy rate generally indicates strong demand for the property.
Vacancy and Collection Allowance is an estimated deduction from Potential Gross Income (PGI) when preparing a real estate budget. This deduction accounts for the loss of income from unrented units and uncollected rent.
The vacancy factor, also referred to as the vacancy rate, is a critical metric in real estate that measures the percentage of vacant rental properties compared to the total inventory of units in a specific area or property portfolio. It's essential for property managers, investors, and developers to assess the health of the rental market and forecast income expectations.
Vacancy rate represents the percentage of all available units or space that are vacant or not rented in a particular property, influencing projected income and financial planning.
With over 3,000 definitions (and 30,000 Quizes!), our Lexicon of Real Estate Terms equips buyers, sellers, and professionals with the knowledge needed to thrive in the real estate market. Empower your journey today!