Chapter 28 - Property Management Tools Flashcards Preview

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Flashcards in Chapter 28 - Property Management Tools Deck (9)
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1

Capitalization Rate

Rate of interest considered a reasonable return on investment; commonly used in the process of determining value based on net income

2

Corrective Maintenance

Restores broken or failed equipment to a specified condition.

3

Cosmetic Maintenance

Increases a property's appeal.

4

Gross Rent Multiplier (GRM)

A number derived from comparable rental properties in an area, which is then used to estimate the value of real estate.

5

Management Proposal

A plan created by the property manager for overseeing the property, including market analysis, and developing a variety of financial reports including the operating budget.

6

Market Rent

What the property could rent for in the open market if unencumbered by any lease and available.

7

Net Operating Income

Income left after all operating costs are paid

8

Preventive Maintenance

Includes routine maintenance and inspections to keep equipment and the property in good working order

9

Rent Roll

Spreadsheet or listing of key information about a property (ie total number of units, tenants names and apartment numbers, lease dates, ad the rent each tenant pays)