In Practice
Revenue per unit rolls rent and other income into a single number per apartment. Add everything the community collects, divide by the number of units, and you can compare communities of different sizes, or the same community from one year to the next. Some companies count all units, and others count occupied units only, so check the definition on your report.
Regional managers and owners use it to spot opportunities. If your revenue per unit trails similar communities, they will ask whether the cause is rent, vacancy, concessions, collections or missing fee income. For you, it is a useful single number to watch alongside occupancy, because it shows the effect of pricing choices, not just the headcount of residents.
An example: a 200-unit community collects 330,000 dollars in a month in total income. Revenue per unit is 1,650 dollars. If a similar community nearby is at 1,720 dollars, you can dig into which line is behind the gap.
A common mistake is comparing numbers that are built differently, such as one report using all units and another using occupied units, or one including fees and the other not. Always match the definition before drawing conclusions.
How to calculate it
Revenue per unit = total income for the period divided by the number of units (or occupied units, as your company defines it). Example only: 330,000 dollars divided by 200 units equals 1,650 dollars per unit per month.
Revenue per Unit: Common Questions
What is the difference between revenue per unit and average rent?
Average rent counts only rent. Revenue per unit includes other income and reflects vacancy and losses if you divide by all units.
What is a good revenue per unit?
It depends on the market, unit mix and amenities. Compare against your own history and similar communities.
