Occupancy Rate
Percentage of rentable space currently occupied by paying tenants.
Occupancy Rate
Occupancy Rate measures the ratio of occupied rental space relative to the total available inventory.
Formula
Occupancy Rate = (Occupied Units / Total Units) * 100
What this tells you
Occupancy shows property tenant health. Low occupancy reduces gross revenues while fixed expenses remain high, impacting NOI and Cash Flow.
How to improve it
- Offer Move-In Incentives: Run temporary lease promotions or concessions to fill vacancies.
- Improve Tenant Retention: Respond quickly to maintenance requests and update older units.