What is credit loss?
Rent owed by tenants who occupy space but do not pay, through delinquency, eviction, or abatements. Also called collection loss or bad debt. Typically 1–2% of GPR for stabilized multifamily.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.