In Practice
A down unit is a vacant unit that is not rentable. It could have fire or water damage, a failed system, a major renovation or a safety issue. It is different from a unit in normal turnover, because there is no ready date and no one can move in until a larger repair is done.
Managers track down units on the weekly report and the occupancy summary, since they are counted in the unit total but produce no income. Owners ask about them because each one is lost rent. Maintenance supervisors build a repair plan with scope, cost, vendors and a target date so the unit returns to service.
Example: a unit has a burst pipe and sits down for six weeks while drywall, flooring and paint are replaced. The team logs the reason, the cost, the insurance claim if there is one, and the expected ready date. Updating that date weekly keeps leasing and the owner informed.
Common mistake: letting a down unit sit with no owner of the problem. Give it a name on the list, a deadline and weekly updates. Also be clear in reporting about which units are down and why, so occupancy figures are not misleading.
Not to Be Confused With
A down unit needs major work and cannot be leased. A vacant ready unit is clean, repaired and available today.
Down Unit: Common Questions
How is a down unit different from a vacant ready unit?
A vacant ready unit can be leased today. A down unit needs significant repair first and cannot be shown or rented yet.
Do down units count against occupancy?
It depends on the company's reporting rules. Many count them in the total unit count but track them separately so the effect is visible.
