What would the vacancy loss be for a property with a Gross Potential Rental Income of $3,000,000 and a 5% vacancy rate?

To determine the vacancy loss for a property, you can use the following formula:

Vacancy Loss = Gross Potential Rental Income × Vacancy Rate.

In this case, the Gross Potential Rental Income is $3,000,000 and the vacancy rate is 5%.

First, convert the percentage into a decimal for calculation:

5% = 0.05.

Next, apply the formula:

Vacancy Loss = $3,000,000 × 0.05 = $150,000.

Therefore, the vacancy loss for this property is $150,000, making it the correct answer. This calculation illustrates how vacancy rates impact the overall income of a property, and understanding it is crucial for property managers and investors in assessing their financial performance and forecasting potential income losses.