Economic Vacancy is low in the Boulder Colorado real estate market. That is great news for multi family real estate investment and makes Boulder a top real estate investment market.
Market Vacancy vs. Economic Vacancy
Vacancy is when a certain number of units – usually in a multi family complex – remain empty. Market vacancy rate is simply the number of units available for rent divided by the total number of rentable units.
Economic vacancy is when all units are filled but several of the renters have fallen behind in payments.
Boulder, Colorado is below the norm foreconomic vacancies. Click this video from InvestmentPropertyColorado.com to see why:
When considering realestate investment, remember that reported vacancies can vary depending on whether they are based on market vacancies or economic vacancies. A multi family unit that is 100 percent occupied based on a market vacancy survey can still show economic vacancies when model and manager units are considered. Some units may be rented but not occupied, thus raising the economic vacancy rate.
Economic vacancies can also include a model unit, manager’s unit, discounted units, and vacant units being readied for occupancy. In addition, an unrentable unit that needs a lot of fix-up is also considered an economic vacancy.
Get expert advice on multi family units in Boulder Colorado and see why it’s a top market for real estate investors. Contact David Gerlitz at InvestmentPropertyColorado today.