As a real estate investor, you already know that a vacant apartment does not make money. Vacancy rate, the percentage of all apartments in your portfolio that are vacant at any time, is generally figured on a year or more of data, based on the number of units that are occupied and vacant monthly. Occupancy rate is the number of occupied units, and is often used because it is seen as more “positive” than vacancy rate.
An example would be having 20 units total, with 15 occupied in January, leaving 5 units vacant in January. When figuring vacant units, you should include units that are vacant and ready for showing / move in, units that are being turned over after a tenant leaves, and units that are not rent-able due to needing repair or renovation. This will give you the most accurate figures available.
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