The vacancy rate represents the percentage of all units or spaces that are unoccupied or not rented. It is a crucial metric in real estate and finance, used to estimate the vacancy allowance on a pro-forma income statement, which is then deducted from Potential Gross Income (PGI) to derive Effective Gross Income (EGI).
A thorough exploration of Effective Gross Income (EGI), covering its definition, calculation formula, practical applications, and examples in real estate investments.
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