Definition of "Vacancy rate"

Sarah Bonn real estate agent

Written by

Sarah Bonnelite badge icon

Keller Williams

Percentage of rental property that is unoccupied. For example, a vacancy rate of 25% means that 25% of the rental unites are nor being used. Idle space can cause a significant cash drain to the landlord who is not receiving cash inflows to offset the cash outflows of maintaining the property. An office building, shopping center, or hotel must have a minimum occupancy rate to break even.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Wood sheeting made from gluing together at lest three layers of veneer. The grain is placed at right angles with each adjoining layer's providing additional strength. ...

Commercial building having several different uses blending together. For example, retail shops are on the first floor, professional offices are on floors two through ten, and a restaurant ...

Interest computations based only on the original principal. For example, the simple interest on a $100,000, 8% loan is $8,000. It is compared with compound interest which is applied to the ...

The amount of inherent risk for a mortgage in granting a mortgage. An operating principle in mortgage risk rating is that the mortgage cannot exceed 2.5 times the mortgagor's annual income, ...

Party that receives part or all of a construction job to do from the general contractor. ...

To approximate the worth or valuation of property To give an appraisal value estimate of property. Property value appraisals are never exact, and are at best approximations of actual ...

report containing financial information about a business or individual. The required financial statements for a real estate company are balance sheet, income statement, and statement of ...

Factor in real estate appraisal. A type of physical depreciation owing the lack of normal upkeep, such as broken glass and doors and discolored paint that negatively impacts the value of ...

The integrity, morals, and principles guiding an individual's or profession's actions. ...

Popular Real Estate Questions