Real Estate
Vacancy Loss Provision
Estimating and recording the expected income loss from a unit that is currently empty.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Vacancy Loss Expense | Expense (+) | 5,000.00 | - |
| Provision for Vacancy Loss | Liability (+) | - | 5,000.00 |
💡 Accountant's Note
For larger managed portfolios, a provision for vacancy is created at year-end to reflect the economic reality that not all units will be occupied 100% of the time.
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