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Delinquency Rate
Delinquency rate expresses late rent as a percentage of a defined rent base. State the calculation basis, reporting period and cutoff before comparing results.
Delinquency rate measures the share of a defined rent base that is late. Buildium describes an amount-based version: late rent amounts divided by rent owed for the same reporting period, expressed as a percentage. The calculation needs a stated definition of lateness.
For a PM company owner or operating leader, an illustrative review records the billing period, payment cutoff, included rent charges and treatment of earlier balances and credits. Use the same basis across properties and periods. A payment-status label and an amount-based rate answer different questions; one identifies lateness and the other expresses its share of the rent base.
Source: Buildium: Important Rental Property Metrics, Delinquency Rate.
Frequently Asked Questions
Does this rate count overdue households?
Not in the amount-based version described here. It compares rent amounts. A percentage based on the number of accounts with late balances is a different measure and needs its own definition.
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