# Collection Rate — % of rents actually collected

A tenant who does not pay occupies the apartment without generating income — the worst of both worlds. Low collection is the most hidden risk in proptech: it does not appear in occupancy but destroys portfolio cash flow.

## Where to find it

Tenants current on payment this month ÷ total tenants with active contracts. Pull it from your collections system, or reconcile payments received against your active contracts spreadsheet.

## If it's off

With 94% occupancy and 88% collection, real economic occupancy is 82.7%. On a GPR of $720K annually, the gap between 90% and 82.7% equals $52,560/year in cash that appeared to exist but does not.

## LATAM Benchmarks

| Status | Range |
|---|---|
| Healthy | > 95% monthly collection |
| Alert | 90–95% |
| Critical | < 90% (high portfolio risk) |

## How to improve it

Automatic collection systems (direct debit) and follow-up from day 5 of arrears reduce collection loss by half compared to manual collection. Technology pays for itself on this item alone.

Related metrics: [Portfolio Units](https://www.uniteconomicscalculator.com/en/glossary/units.html) · [Monthly Rent per Unit](https://www.uniteconomicscalculator.com/en/glossary/market-rent-per-unit.html) · [Physical Occupancy](https://www.uniteconomicscalculator.com/en/glossary/physical-occupancy.html)

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