Which of the following impacts the calculation of economic occupancy?

Economic occupancy refers to the percentage of rental income actually collected versus the potential rental income a property could generate. This calculation considers more than just the number of occupied or vacant units; it specifically takes into account the factors that influence revenue.

The correct choice focuses on both concessions and bad debt. Concessions are discounts or incentives given to renters, which can reduce the effective rental income collected. For example, if a property offers a month of free rent, this will lower the economic occupancy because while the unit may be occupied, the rent collected is diminished. Similarly, bad debt pertains to rent that was due but not collected due to tenant issues or defaults. If a tenant fails to pay their rent, even if the unit is occupied, it negatively impacts the economic occupancy since the expected income is not realized.

By considering both concessions and bad debt, one can gain a clearer understanding of the true financial performance of a property compared to just looking at occupancy rates alone. This comprehensive view is critical for property management and investment analysis in the multifamily housing market.