Economic Occupancy

Economic occupancy is the dollar version of occupancy — rent collected divided by rent billed, expressed as a percentage. It captures both physical vacancy and delinquency in one number, so a park running 100 percent physical occupancy with 12 percent of residents in arrears would report 88 percent economic occupancy. Economic occupancy below 92 percent in a stabilized park indicates a collections problem that should be actively worked. Lenders look at trended economic occupancy over the trailing 12 to 24 months as a key underwriting signal.