Disadvantages of multiplier method

The total rent is calculated by multiplier method, and its disadvantages are as follows:

1, ignoring income other than house rent.

2. Ignore the differences in vacancy rates and operating expenses of different buildings. Multiplier method is one of the commonly used methods for quality cost measurement. Simply assume that all the total loss costs are multiples of the measured loss costs. Its basic principle: it is assumed that the total failure cost is several times the estimated failure cost.