Question

An investor owns a 10 unit duplex complex containing 20 apartments. Each apartment in the complex rents for $1500 per month. Last year all the apartments were occupied for 6 months. One apartment was vacant for 5 months and two apartments were each vacant for one month. What was the occupancy rate for the property last year?

Answer 1

Answer:

97%

Explanation:

We calculate occupancy as follows,

There are 20 apartments and each is available for 12 months a year.

Total occupancy at 100% will be when all 20 apartments are occupied for 12 months, giving us 240 total apartment occupations.

vacant apartments were as follows,

1 for 5 months = 5 occupations

2 for 1 month each = 2 occupations

(We equate as 1 apartment = 12 occupations)

Total occupancy = 240 - 5 - 2 = 233 occupations

Occupancy rate = 233/240 = 97%

Hope that helps.