Vacancy and Credit Loss

In the earlier posts at Real Estate Analysis blog I have presented various input parameters, such as gross scheduled income, vacancy rate and operating expenses. From now we will look at the actual calculations and Vacancy and Credit Loss is the first calculation of operation effectiveness.

Vacancy and credit loss represents the part of the potential rental income that is lost because of unoccupied units or uncollectable rent from tenants. It is usually estimated as a percentage of gross scheduled income.