Physical occupancy rate is the percentage of available rental space that is occupied with paying tenants. The occupancy rate formula for a particular month is number of units rented/ number available to be rented* 100. For example, you may have 50 units available for renting and 45 of them have paying tenants. To calculate physical occupancy rate, divide 45 by 50 for a total of .90. To express as a percentage multiply .90 by 100. The physical occupancy rate is 90 percent.
Some people confuse physical occupancy and leased occupancy. Here’s how to calculate the leased percentage: current number of units occupied + (number of units with signed leases yet to move in) / total number of units * 100%. This measurement can be misleading. For example, you may have units occupied with people moving out next month but also signed leases for people moving in next month. This would result is you showing an occupancy of more than 100 percent.
An economic occupancy rate is the proportion of the gross potential rent that is collected—the money that is actually paid to your business. The gross potential rent (GPR) is the amount of rent that would be collected if you rented out all the apartments at the amount of rent shown in the rental contract. The economic occupancy rate formula is (GPR minus deductions)/GPR * 100. To calculate the economic occupancy apartment building owners first calculate the GPR by multiplying the number of apartments by the amount of rent that you could charge for each; for example, 70 apartments at $200 each would yield a GPR of $14,000. Then deduct out the rent not received because units are vacant or occupied by someone who receives rent for free, such as the building supervisor, and the amount of discounts given. Let’s say that one apartment is vacant and one is occupied by a supervisor. Another apartment is discounted $100. That means you would deduct $500 from the $14000 to get a total of $13500. Divide $13500 by $14000 and multiply that by 100. Your economic occupancy rate is 96.4 percent.
A room occupancy calculator is important to ensure that you comply with state laws regarding how many people can live in an apartment unit. The room occupancy formula is total square feet / number of tenants occupying the apartment. For example, New York law says that you must have at least 80 square feet per person. Suppose you have three people living in a two-room apartment. One room is 8×10 (80 square feet) and the other room is 12×14 (168 square feet). The total square footage is 248 (80 plus 168) Divide 248 by the number of tenants (3) to get 82.6. From this you determine that you have 82.6 square feet per person and are in compliance with the law.