Occupancy rate

How occupancy is calculated

Divide the number of days let by the number of days in the period and multiply by 100. For a portfolio, add up the days for each flat in the same way. The figure shifts, however, if someone leaves out renovation periods, only starts counting from when the listing went live, or includes reserved flats. So whenever you're given a percentage, ask for the period it covers and what exactly it includes.

Occupancy says nothing about whether tenants pay. A flat can be let for the entire year and still be missing part of the rent. Alongside occupancy, keep track of the payments actually received and the costs of tenant turnover.

What one empty month does

An illustrative example: the rent is 20,000 Kč. Twelve months paid in full come to 240,000 Kč. One full month without a tenant cuts income to 220,000 Kč – a drop of 8.3%. It's potential gross income that falls, not necessarily net yield.

If other expenses crop up in the meantime, you'll be left with even less. On the other hand, a higher agreed rent can partly make up for the gap later on. Whether to adjust the price should depend on a concrete comparison. 100% occupancy at any cost is not an investment strategy.