Vacancy Loss

Rent lost because a lot is unoccupied or unrented during the period.

Vacancy loss is the rent that would have been collected if every lot were occupied but wasn't, because some lots had no home or no resident. It is calculated by subtracting actual occupied-lot rent from gross potential rent. In stabilized MHP portfolios, vacancy loss typically runs 3 to 8 percent of gross potential rent; value-add parks during early infill can see 30 percent or higher. Vacancy loss is one of the two main components (along with collection loss) that bridges gross potential rent to effective gross income in a park P&L.

Related Terms

Effective Gross Income (EGI)

A park's total potential rent minus vacancy and collection losses, plus other income.
Gross Potential Rent (GPR)

The total rent a park would collect if every lot were occupied and every resident paid in full.
Occupancy

The percentage of lots in a park that have a home on them and a paying resident.

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