Glossary

Unoccupied units as a percentage of the total number.

Vacancy Allowance is an amount generally deducted when calculating Net Operating Income to account for actual or estimated vacancy in an investment property. Credit Loss Allowance is an amount generally deducted when calculating Net Operating Income to account for actual or estimated losses due to non-payment of rents or other accounts receivable.

The percentage of all units or space that is unoccupied or not rented. On a pro_forma income statement a projected vacancy rate is used to estimate the vacancy allowance, which is deducted from potential gross income to derive effective gross income.