Which two factors are required to calculate physical occupancy?

The calculation of physical occupancy is essential in evaluating how many units in a property are currently occupied by residents. To determine physical occupancy, the two necessary components are the total number of available units in the property and the number of those units that are currently occupied.

When you take the total units and subtract the occupied units, you can effectively measure the percentage of units that are filled. This is a critical metric for property managers as it directly reflects the property's performance and revenue generation capacity.

Using leased units instead of occupied units would not provide an accurate picture of physical occupancy, as a leased unit may not necessarily be occupied. Similarly, pre-leased units or those not delinquent do not paint a clear picture of the current living situation in the building. Hence, understanding and utilizing the combination of total units and occupied units is the key to determining physical occupancy accurately.