Definitions for "Vacancy factor"
An allowance or discount for estimated vacancies (unrented units) in a rental project. The vacancy and loss in rent factor is important in assembling an investment income analysis of a property, such as an apartment building.
Annual gross income multiplied by percent vacant (AGI X % VACANCY) Return To Menu
A multiple by which gross monthly rental income is multiplied. The vacancy factor reduces the owner's monthly rental income to allow for months when units are vacant and the owner is not receiving full rental income.