Vacancy Rate
Definition:
Vacancy rate is a measure of the number of vacant rental units in a given area as a percentage of the total number of rental units. It is calculated by dividing the number of vacant units by the total number of units and multiplying by 100.
Formula:
Vacancy Rate = (Number of Vacancy Units / Total Number of Units) * 100
Example:
Here are some of the factors that can affect vacancy rate:
Location: The location of the rental property can have a significant impact on its vacancy rate. Properties in desirable locations tend to have lower vacancy rates than properties in less desirable locations.
Price: The price of the rental property can also have a significant impact on its vacancy rate. Properties that are priced too high tend to have higher vacancy rates than properties that are priced competitively.
Condition: The condition of the rental property can also have a significant impact on its vacancy rate. Properties that are in poor condition tend to have higher vacancy rates than properties that are in good condition.
Market conditions: The market conditions can also have a significant impact on vacancy rate. For example, if the rental market is oversaturated, vacancy rates can be high.