
Underwriting Bad Debt Revisited: The True Cost of Tenant Default
In my 30-year career in multifamily investment management, beginning with acquisitions, bad debt was often only superficially analyzed and typically underwritten to a standard of approximately 50 basis points (bps) at stabilization. If a property was acquired with higher bad debt, say 1 or 2 perc…
Steve Zaleski·May 3, 2026·5 min