Definition of Vacancy Rate
Vacancy Rate in Orange County
The Orange County vacancy rate is a value used to calculate the percentage of all available units in a rental property, such as a hotel or apartment complex, that are vacant or unoccupied at a particular time. It is the exact opposite of the occupancy rate, which is a calculation based on the percentage of units in a rental property that are occupied.
For example the Newport Beach vacancy rate is a useful tool for evaluating a rental property. High vacancy rates indicate that the property is not renting well; low vacancy rates point to strong rental sales. The vacancy rate and occupancy rate must total 100%. Vacancy rates most often represent units that are vacant and ready to be rented, units that have been turned off upon the exit of a tenant and units that are not currently rentable because they are in need of repairs or renovations. When a BanCorp Newport Beach Realtor represents client’s looking to purchase rental properties in Orange County we are looking at both the vacancy rate and the occupancy rate in determining the fair market value for a rental property.