IREM Global Summit | Chicago | October 10-13

IREM Global Summit | Chicago | October 10-13

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Understanding Loss to Lease

Can you define the term loss to lease? This vague financial concept can be difficult for real estate managers to explain and even harder to calculate. In this course, you will learn how to calculate a property’s net rental income accounting for loss to lease based on the market. A case study property, Mulberry Square, is used to walk through the pro forma statement from gross potential income through net rent revenue, fully accounting for loss to lease. This course will help you to:

  • Define gross potential income
  • Calculate loss to lease
  • Differentiate between physical vacancy, economic vacancy, and collection loss
  • Determine net rent revenue

Once you’ve explored the case study property and other examples in this course, you will be able to calculate loss to lease and ultimately, net rent revenue, for the properties you manage.