Rental loss
What is it?
Rent loss represents the loss of rental income that occurs when a property fails to generate expected revenues due to vacancies or unpaid rents. It is a crucial indicator for assessing the income stability of the property and can have a significant impact on its financial performance.
How is it calculated?
Rental loss = The sum of the value of accounts representing loss of rent
Why is it important to follow?
Rent loss is a critical factor affecting the profitability and financial health of a property. It can occur due to vacancies, unpaid rents, or other factors preventing the property from generating expected revenues. Monitoring and managing rent loss is essential to ensure that the property continues to generate stable income and maintains its financial sustainability.
Created by Homepal
3/25/2024
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