Chapter 28 - Property Management Tools Flashcards Preview

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

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


Corrective Maintenance

Restores broken or failed equipment to a specified condition.


Cosmetic Maintenance

Increases a property's appeal.


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.


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.


Market Rent

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


Net Operating Income

Income left after all operating costs are paid


Preventive Maintenance

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


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)