Understanding The Loss To Lease Calculation

Understanding The Loss To Lease Calculation

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When reviewing a multifamily property’s income statement, one of the first things to look for is a line item called “loss to lease.” Although widely used, the loss to lease concept is often a source of confusion. It can be counterintuitive because the word “loss” is in the name, but the presence of this line item should be viewed as a positive.

What Is Loss To Lease?

Los…

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