Calculate Physical and Economic Occupancy Rates instantly.
Optional: Economic Data (For Revenue Analysis)
Physical Occupancy Rate0%
Vacancy Rate:0%
Vacant Units:0
Economic Occupancy Rate:0%
Loss to Lease/Vacancy ($):$-
function calculateOccupancy() {
// Clear previous errors
var errorDiv = document.getElementById('errorMsg');
errorDiv.style.display = 'none';
errorDiv.innerHTML = ";
// Get Basic Inputs
var totalUnits = parseFloat(document.getElementById('totalUnits').value);
var occupiedUnits = parseFloat(document.getElementById('occupiedUnits').value);
// Validation for Basic Inputs
if (isNaN(totalUnits) || isNaN(occupiedUnits)) {
errorDiv.innerHTML = "Please enter valid numbers for Total Units and Occupied Units.";
errorDiv.style.display = 'block';
return;
}
if (totalUnits totalUnits) {
errorDiv.innerHTML = "Occupied units cannot exceed total units.";
errorDiv.style.display = 'block';
return;
}
if (occupiedUnits 90%, Red = 90) {
occupancyDisplay.style.color = '#27ae60'; // Green
} else if (occupancyRate 0) {
var economicOccupancy = (actualRent / potentialRent) * 100;
var loss = potentialRent – actualRent;
document.getElementById('displayEconomicOccupancy').innerHTML = economicOccupancy.toFixed(2) + '%';
document.getElementById('displayLoss').innerHTML = '$' + loss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
economicSection.style.display = 'block';
} else {
economicSection.style.display = 'none';
}
// Show Results Container
document.getElementById('results').style.display = 'block';
}
How to Calculate Occupancy Rate for Apartments
The occupancy rate is one of the most critical Key Performance Indicators (KPIs) for real estate investors, property managers, and apartment complex owners. It acts as a primary health check for your rental property, indicating how effectively the units are being rented out and generating revenue.
While calculating it may seem straightforward, understanding the difference between physical occupancy and economic occupancy is vital for maintaining a profitable portfolio. This tool helps you calculate both metrics to give you a complete picture of your property's performance.
1. The Physical Occupancy Formula
Physical occupancy measures the percentage of units that are currently rented and occupied by tenants, regardless of whether they have paid rent. This is the standard metric used in listing descriptions and general marketing.
Formula:
(Number of Occupied Units ÷ Total Number of Units) × 100 = Occupancy Rate %
For example, if you own an apartment complex with 50 units and 45 units have tenants living in them:
(45 ÷ 50) = 0.90
0.90 × 100 = 90% Occupancy Rate
2. Physical vs. Economic Occupancy
While physical occupancy tells you how full the building is, it doesn't tell you how much money you are making. A building can be 100% physically occupied, but if 20% of tenants aren't paying rent, your business is suffering. This is where Economic Occupancy comes in.
Economic occupancy measures the revenue collected against the maximum potential revenue (Gross Potential Rent). It accounts for vacancies, concessions (like "first month free"), and bad debt (unpaid rent).
Benchmarks vary by market location and property class, but general industry standards are as follows:
95% – 100%: Excellent. However, if you are consistently at 100%, your rents might be too low, and you may be missing out on revenue growth.
90% – 95%: Healthy. This is the sweet spot for most stabilized apartment complexes.
80% – 90%: Average/Concern. This may indicate poor marketing, management issues, or deferred maintenance.
Below 80%: Distressed. Unless the property is under renovation, this rate often leads to negative cash flow.
Why Your Vacancy Rate Matters
The inverse of occupancy is your Vacancy Rate. If your occupancy is 92%, your vacancy rate is 8%. High vacancy rates increase operational costs per unit because fixed costs (taxes, insurance, landscaping) must be spread across fewer paying tenants. Furthermore, vacant units require utilities and maintenance to keep them show-ready, adding to expenses without generating income.
Tips to Improve Apartment Occupancy
Review Market Rents: Ensure your pricing is competitive with similar properties in the immediate radius.
Improve Curb Appeal: First impressions matter. Clean landscaping and fresh paint can increase conversion rates.
Tenant Retention Plans: It is cheaper to keep an existing tenant than to find a new one. Respond to maintenance requests quickly to keep tenants happy.
Marketing Audit: Ensure your listings on platforms like Zillow or Apartments.com have professional photos and accurate descriptions.