I don’t care what the occupancy rate is.
You heard that right, tell me a property is 100% occupied and you won’t get a fist bump.
Cause occupancy don’t much matta.
You and I could fill up the worst of the worst apartment community so it’s 100% occupied. Doesn’t mean the people in there will pay.
We are in the rent collection business and occupancy might give us an indication but it doesn’t tell us how much moola we’re bringing in.
Want that fist bump?
Then tell me what your economic occupancy is. If it’s 95% economic occupancy you’ll get a bump.
Economic occupancy tells us how many people living in the community are paying. Now, that is a direct correlation to the bottom line.
If it’s greater than 95% economic occupancy then I’ll dress up in a mascot uniform of your choice and we’ll do one of these little numbers…
So, next time you’re reviewing a deal go straight to the good stuff and immediately ask about economic occupancy.