# Physical Occupancy — % of units with a tenant

Physical occupancy measures how many units have a tenant, but not whether they pay. A "full" portfolio with low collection still has cash flow problems. The metric that matters is economic occupancy (occupancy × collection rate).

## Where to find it

Units with an active tenant today ÷ total portfolio units. This is in your property management system, or count it directly from your spreadsheet of active contracts.

## If it's off

Each point of vacancy in a $100K GPR portfolio equals $1,000/month in lost income. With 3 vacant units out of 50, you lose $3,600/month in uncollected rent alone, plus the cost of maintaining vacant assets.

## LATAM Benchmarks

| Status | Range |
|---|---|
| Healthy | > 93% physical occupancy |
| Alert | 85–93% |
| Critical | < 85% (structural vacancy) |

## How to improve it

Reletting time (days between a tenant leaving and the next arriving) is the main occupancy lever. Automating vacant unit listings and having a candidate pipeline before contract expiration reduces average vacancy time.

Related metrics: [Return Rate](https://www.uniteconomicscalculator.com/en/glossary/return-rate.html) · [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)

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