Term
| Term 1 Annual Turnover Percentage |
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Definition
| definition 1 Total number of annual, physical move outs ÷ total number of apartments |
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Term
| Term 1 Annual Turnover Percentage |
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Definition
| definition 1 Total number of annual, physical move outs ÷ total number of apartments |
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Term
| Annual Turnover Percentage |
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Definition
Total number of annual, physical move outs ÷ total number of apartments Example
Assume you have as total of 360 units and a total of 295 physical move-outs.
Calculate the annual turnover as follows:
295 ÷ 360 = 82% Turnover |
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Term
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Definition
(Number ÷ time period in months) x 12 Example
Assume you have 52 service requests recorded in January and 36 in February.
Calculate an annualized number of service requests for the year as follows: |
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Term
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Definition
| (Actual Rental Income less any applied – Concession) ÷ Units Occupied |
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Term
| Average Effective Rent for Renewals |
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Definition
| Average Effective Rent on Previous Lease Percentage Increase = Amount of Increase divided by Previous Lease Rent |
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Term
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Definition
| Square footage of all specific unit types ÷ total number of units = average square feet per unit . This is a weighted average, not a simple average of floor plan size. |
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Term
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Definition
| Annual net operating income ÷ capitalization rate = value or Capitalization Rate x Value = (Annual) Net Operating Income (NOI) |
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Term
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Definition
| Total number of leases for the week ÷ total number of traffic |
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Term
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Definition
| Total cost of ad ÷ number of leases generated from ad |
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Term
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Definition
| Total cost of ad ÷ total number of traffic generated from ad |
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Term
| economic occupancy percentage |
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Definition
| divide the total rent revenue (TRR) by the gross potential rent (GPR). First determine the total rent revenue (net rental revenue). |
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Term
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Definition
| If all leases are signed at scheduled market rent and all concessions awarded via a lease addendum, then the calculation is as follows:Market rent x number of months in lease term less total concession awarded ÷ number of months in lease term |
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Term
| Gross Potential Income (GPI), |
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Definition
| combine the sum of all occupied units at current lease contract rates plus all vacant units at scheduled market rents. |
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Term
| Gross Potential Rent (GPR) |
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Definition
| is the amount of rent that would be collected if a property was fully occupied and all residents were paying market rent. |
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Term
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Definition
Total number of vacant units + total number of notice units – total number of pre-leased units = total exposure in units
Total exposure in units ÷ total number of units = exposure percentage |
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Term
| Month-to-Month Leased Percentage |
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Definition
| Total number of month-to-month leases ÷ total number of apartments = percentage of month-to-month leases |
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Term
| Net Operating Income (NOI) |
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Definition
The total revenue that remains after all operating expenses, but before mortgage debt service and capital expenditures (or replacement reserve payments) are made.
Net Operating Income = Total Income – Total Operating Expenses =EGI—OE=NOI |
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Term
| Occupancy Percentage (Physical Occupancy) |
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Definition
| Total number of (physical) occupied units ÷ total number of apartments = occupancy % |
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Term
| Operating Expenses per Unit (Annual) |
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Definition
| operating expenses ÷ total number of units = operating expenses per unit |
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Term
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Definition
| To calculate the operating expense ratio, divide the operating expenses by the Effective Gross Income. |
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Term
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Definition
| Total unit rental ÷ total square footage = price (rent) per square foot |
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Term
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Definition
| To calculate the Pro-rated Move-In/Prorated Move-Out Rent, you must first calculate the daily rate. Most computer software systems use a calendar based pro ration method and round amounts to the nearest dollar. Prorated amounts lower than 50 cents are rounded down, while amounts higher than 50 cents are rounded up. |
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Term
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Definition
| Total rent ÷ Number of Days in the Month = Daily Rate |
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Term
| Pro-rated Move-In/Pro-rate Move-Out Rent |
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Definition
| Daily rate x total number of days occupied** = Prorated Move-In or Pro-rated Move-Out Rent |
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Term
| Projected Traffic Required to Meet Leasing Goals |
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Definition
| Total number of leases needed ÷ average closing percentage = projected traffic needed |
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Term
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Definition
| Total number of signed renewal leases ÷ total number of expiring leases = renewal percentage |
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Term
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Definition
| Total number of occupied units + total number of leased not occupied ÷ total number of apartments = total leased percentage |
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Term
| Total Rent Revenue (Net Rental Revenue) |
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Definition
The amount of Gross Potential Rent less rent lost from vacancy, concessions, collections loss and non-revenue units. Also referred to as net rental income.
GPR – current month vacancy, concessions, bad debt, and non-revenue units = Total Rent Revenue |
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Term
| Unit Type/Unit Mix Percentage |
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Definition
| Total number of a specific unit type ÷ total number of units = percentage of unit type |
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Term
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Definition
| Total number of vacant apartments ÷ total number of apartments = vacancy percentage |
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Term
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Definition
(Actual number – budgeted number) ÷ budgeted number = variance percentageThe variance percentage is the calculating of how much you are actually over or under your budgeted figures.
If an expense category is over budget, it is a negative variance
If an expense category is under budget, it is a positive variance
If an income category is over budget, it is a positive variance
If an income category is under budget, it is a negative variance |
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