Real Estate Glossary

What is Vacancy and Credit Losses?

Vacancy and credit losses are two factors that can affect the income and value of a rental property. Vacancy refers to the amount of time a rental property is not occupied by tenants. During these periods, the property owner is not receiving any rental income. Credit losses refer to the amount of money that a property owner loses due to tenants not paying their rent. These losses can occur due to a variety of reasons, such as a tenant losing their job or becoming unable to pay their rent due to other financial issues. Both vacancy and credit losses can have a significant impact on the financial performance of a rental property and should be taken into consideration when evaluating the potential return on investment

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