When calculating physical occupancy, what is typically excluded from the calculation?

When calculating physical occupancy, the focus is primarily on the number of units that are actually occupied by residents. Unoccupied units are typically excluded from this calculation because they do not contribute to the physical presence of tenants in the community.

Physical occupancy reflects the percentage of units that are filled with residents compared to the total number of units available for rent. Therefore, only those units that are actively leased by tenants are included in the count. Excluding unoccupied units provides a clearer picture of the property's performance and occupancy status. In contrast, other categories, such as units on notice to vacate and leased units, can still impact occupancy calculations in various ways, but unoccupied units are simply not part of the occupied statistic at all. This distinction helps property managers and owners understand their property's revenue potential and areas for improvement.