Real Vacancy Rate (number)
What is it?
Real Vacancy Rate (number) is a key figure that measures the proportion of the total number of objects in a property or portfolio that are currently empty and not generating rental income. This key figure gives an indication of how efficiently a property is used and how many of the total available objects are not contracted.
In Homepal, real vacancy is defined as "non-let if lettable". Thus, only rental properties that are available are included - vacant, blocked or similar are excluded in this value.
How is it calculated?
Number of rental properties without an active agreement with a tenant / Total number of rental properties = %
* Includes only rental properties that are not marked as vacant, blocked or similar.
Why is it important to follow?
There are several good reasons why you should follow the key figure:
Better revenue planning: By monitoring this metric, you can better plan your revenue stream as it provides an accurate indication of how many of your available rentals are actually generating revenue. It helps you establish realistic budgets and financial forecasts.
Efficient resource allocation: By identifying the degree objects that are truly vacant (that is, not blocked or empty), you can direct your resources in the right way and focus on the truly available objects.
Customer Satisfaction: Keeping track of the real vacancy helps you ensure that the items you are actually offering are in good condition and ready to rent. This can improve tenant satisfaction and reduce the risk of negative feedback from tenants.
Strategic portfolio management: Information about vacancies is valuable for making decisions about the composition and strategy of the property portfolio. It can help you decide if you should invest more in marketing or improvements to fill vacant properties or if it's time to reevaluate your real estate investments.
Early detection of problems: If the real vacancy suddenly increases, it can be an indication of problems, such as reduced demand in your real estate market. Being aware of this early on gives you the opportunity to take action and adjust your strategy in accordance with market changes.
In summary, the key figure is a central indicator for monitoring and optimizing the revenue stream and profitability in property management. It enables you to make informed decisions, manage your real estate portfolio efficiently and adapt to changes in the real estate market.
Created by Homepal
9/15/2023
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