Non-Revenue Units

Non-revenue units are residential units within a multifamily property that do not generate rental income for the property owner. These units are typically designated for specific purposes or occupants and are not available for rent to the general public. There are two main types of non-revenue units:

Employee Units: Employee units are residential units that are occupied by the property's staff, such as property managers or maintenance personnel. The property owner does not charge rent for these units, as they are provided as part of the employees' compensation or as an incentive for their services to the property.

Model Units: Model units are fully furnished and decorated residential units that are used to showcase the property's features, finishes, and amenities to prospective tenants. Model units are not rented out, as they are intended to help attract new tenants and facilitate lease signings.

While non-revenue units do not directly contribute to rental income, they can play an important role in the overall management, maintenance, and marketing of a multifamily property. Property owners should carefully consider the benefits and costs of allocating units for non-revenue purposes and monitor the impact of non-revenue units on property occupancy and financial performance.