{
  "slug": "rent-collection-loss-rate",
  "title": "Rent Collection Loss Rate Calculator",
  "heading": "Rent Collection Loss Rate Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/rent-collection-loss-rate",
  "summary": "Track how much billed rent you're actually collecting and where it's leaking.",
  "description": "Collection loss (also called bad debt or credit loss) is billed rent that never gets collected — partial payments, skips, write-offs after eviction, and unresolved balances from move-outs. It's a different number from vacancy loss, and portfolios often watch it closely because a rising collection loss rate is an early warning sign of tenant screening problems or local economic stress before it shows up anywhere else in the financials. This calculator computes your collection rate and loss rate from billed versus collected rent and benchmarks it against typical operating ranges so you know if your number needs attention.",
  "formula": "Collection rate = rent collected ÷ rent billed × 100. Collection loss = rent billed − rent collected.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=rent-collection-loss-rate",
  "inputs": [
    {
      "id": "rentBilled",
      "label": "Total rent billed (monthly, occupied units)",
      "kind": "number",
      "hint": null,
      "default": 42000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "rentCollected",
      "label": "Total rent actually collected (monthly)",
      "kind": "number",
      "hint": null,
      "default": 39800,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "writeOffs",
      "label": "Additional write-offs from past move-outs (monthly avg)",
      "kind": "number",
      "hint": null,
      "default": 350,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "collectionRate",
      "label": "Collection rate",
      "format": "percent",
      "hint": null,
      "primary": true
    },
    {
      "id": "lossRate",
      "label": "Collection loss rate",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "monthlyLoss",
      "label": "Monthly collection loss",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "annualLoss",
      "label": "Annualized collection loss",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Total rent billed (monthly, occupied units): 42000 $",
      "Total rent actually collected (monthly): 39800 $",
      "Additional write-offs from past move-outs (monthly avg): 350 $"
    ],
    "outputs": [
      "Collection rate: 94.76%",
      "Collection loss rate: 6.07%",
      "Monthly collection loss: $2,550",
      "Annualized collection loss: $30,600"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter total rent billed (monthly, occupied units) ($).",
      "Enter total rent actually collected (monthly) ($).",
      "Enter additional write-offs from past move-outs (monthly avg) ($).",
      "Read your collection rate on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "rentBilled": 25000,
        "rentCollected": 24000,
        "writeOffs": 200
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "rentBilled": 42000,
        "rentCollected": 40000,
        "writeOffs": 350
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "rentBilled": 67000,
        "rentCollected": 63500,
        "writeOffs": 550
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What's a healthy collection rate?",
      "a": "Well-run conventional multifamily typically runs 97-99% collection rate in a stable economy. Below 95% consistently is worth investigating — it usually points to screening standards that are too loose, an affordability mismatch between rent and local incomes, or slow follow-up on late payments."
    },
    {
      "q": "How is this different from vacancy loss?",
      "a": "Vacancy loss is rent you never billed because the unit sat empty. Collection loss is rent you billed to an occupied unit but didn't actually get paid. Both reduce effective gross income, but they point to different problems — one is a leasing/marketing issue, the other is a screening/collections issue."
    },
    {
      "q": "Does one large eviction write-off skew this number?",
      "a": "Yes, significantly on a smaller portfolio — a single $4,000 write-off from an evicted tenant can swing a 20-unit property's monthly collection loss rate dramatically. Track a rolling 12-month average rather than reacting to any single month's number."
    },
    {
      "q": "How do I improve collection rate?",
      "a": "Tighten income and rental history verification during screening (income at 2.5-3x rent is a common minimum), enforce a consistent grace period and late fee policy without exceptions, and follow up on missed payments within days rather than weeks — early intervention dramatically improves eventual recovery odds."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/late-fee-revenue-projection",
    "https://www.revenuelab.fyi/toolbox/eviction-cost-calculator"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Rent Collection Loss Rate Calculator (https://www.revenuelab.fyi/toolbox/rent-collection-loss-rate)"
}