How do I calculate rent collection rate for a property portfolio?
Rent collection rate is rent received in the period divided by rent billed (due) in the same period, multiplied by 100. It shows how much of what should have been paid was actually collected on time.
Example: 95,000 collected against 100,000 billed gives 95 percent.
It matters because it is the quickest warning sign of tenant distress.
Commonly misread:
- Counting payments for earlier arrears as collection of this period's rent. Allocate payments to the period they settle.
- Including recoveries and penalties in billed amounts without saying so.
- Presenting one portfolio-wide figure that hides a single building with serious problems.
Track both on-time collection (paid by due date) and collection after follow-up, by tenant and by property.
Want this applied to your business? Zansa builds dashboards and forecasts for small and mid-sized companies worldwide. Start with a free intro call.
Book a call