Break-Even Point
The break-even point is the rent level or occupancy rate at which total property income equals total expenses, resulting in zero net cash flow.
| Calculation Type | Formula |
| Break-even rent | Total annual expenses / 12 months |
| Break-even occupancy | Operating expenses / Gross potential income |
| With debt service | (Operating expenses + Mortgage payment) / Gross income |
| Time to break-even | Total acquisition cost / Annual net cash flow |
| Example: AED 1.5M Property | Annual Amount |
| Service charges | AED 18,000 |
| Mortgage payment | AED 60,000 |
| Management and maintenance | AED 12,000 |
| Total expenses | AED 90,000 |
| Break-even monthly rent | AED 7,500 |
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