Occupancy rate is the percentage of time that a property is rented out. It is a measure of how well a property is performing as an
investment. A higher occupancy rate indicates that a property is more attractive to tenants, which can lead to higher rental
income.
Occupancy rate is calculated by taking the total number of days that a property is rented out and dividing it by the total number of days in a year. For example, if a property is rented out for 365 days in a year, the occupancy rate would be 100%.
Here are some of the applications of occupancy rate in property investment:
Set rental prices: Investors can use occupancy rate to set rental prices for their properties. A higher occupancy rate indicates that a property is more attractive to tenants, which means that
investors can charge higher rent.
Make investment decisions: Investors can use occupancy rate to make investment decisions. For example, an investor may decide to invest in a property with a higher occupancy rate in order to maximize their
profits.
Monitor performance: Investors can use occupancy rate to monitor the performance of their property investments. A decline in occupancy rate may indicate that a property is becoming less profitable, which may prompt the investor to take action, such as increasing the rent or finding new tenants.