Definition
Occupancy rate is percentage of units occupied. 100% occupancy may indicate rents are too low. Healthy targets are 90-95%.
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Higher occupancy rates indicate strong demand and effective property management. However, 100% occupancy may indicate rents are too low or tenant screening is insufficient. Most investors target 90-95% occupancy rates as realistic and sustainable.
Pro Tip
Track occupancy trends over time to identify seasonal patterns.
Example
A 10-unit property with 9 occupied units has a 90% occupancy rate