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Rent Collection Rate
The percentage of billed rent collected for a defined period and collection cutoff.
Rent collection rate measures the share of billed rent that has been collected. Divide rent collected for the defined billing period by rent billed for that period, then multiply by 100.
State the collection cutoff and treatment of earlier balances, credits, and non-rent charges. Unlike economic occupancy, this metric uses billed rent rather than gross potential rent as its denominator.
Source: RealPage, Multifamily Property Management Guide, Financial Metrics.
Frequently Asked Questions
Does rent collection rate measure physical occupancy?
No. It compares rent collected with rent billed. Physical occupancy measures occupied units or space.
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