Basics Flashcards
What is a rental property?
A rental property is real estate that is owned by an individual or entity and is leased to tenants for a period of time.
True or False: Rental properties can only be residential.
False
What are the two main types of rental properties?
Residential and commercial properties.
Fill in the blank: The income generated from rental properties is known as __________.
rental income
What is the purpose of a lease agreement?
To outline the terms and conditions under which a tenant can occupy the rental property.
Multiple Choice: Which of the following is NOT a common expense associated with rental properties? A) Property taxes B) Mortgage payments C) Grocery bills
C) Grocery bills
What is cash flow in the context of rental properties?
The net amount of cash being transferred into and out of the rental property.
True or False: Positive cash flow occurs when rental income exceeds total expenses.
True
What is a property management company?
A business that handles the day-to-day operations of rental properties on behalf of the owner.
Fill in the blank: The __________ is the total amount of money borrowed to purchase a rental property.
mortgage
What does ROI stand for in real estate investing?
Return on Investment
Multiple Choice: Which factor is NOT typically considered when evaluating a rental property’s profitability? A) Location B) Property size C) Owner’s favorite color
C) Owner’s favorite color
What is appreciation in relation to rental properties?
The increase in the property’s value over time.
True or False: Depreciation can provide tax benefits for rental property owners.
True
What is the significance of location in rental property investment?
Location affects property value, rental demand, and potential rental income.
Fill in the blank: __________ is the process of determining the appropriate rental price for a property.
Rent pricing
What is tenant screening?
The process of evaluating potential tenants to determine their suitability for renting a property.
Multiple Choice: Which of the following is a common method for financing rental properties? A) Personal loans B) Credit cards C) Mortgages
C) Mortgages
What is a landlord?
An individual or entity that owns rental property and leases it to tenants.
True or False: Landlords are legally required to provide a habitable living environment.
True
What is a lease option?
An agreement that gives a tenant the right to purchase the rental property after a specified period.
Fill in the blank: A __________ is a written document that specifies the rights and responsibilities of both landlords and tenants.
lease
What are eviction proceedings?
Legal processes initiated by a landlord to remove a tenant from a rental property.
Multiple Choice: What is typically included in property management fees? A) Tenant finding B) Maintenance C) Both A and B
C) Both A and B
