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Property management glossary
Property investing

Occupancy rate

Plain-English definition

The share of available rental units that are occupied during a point in time or period.

What occupancy rate means in practice

Physical occupancy counts units; economic occupancy compares collected or earned rent with potential rent. Labeling the version and measurement date prevents misleading comparisons.

Example

Nine occupied units out of ten available units equals 90% physical occupancy.

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This glossary is educational and not legal, tax, lending, or accounting advice. Rules and terminology can vary by jurisdiction and professional context.