GRM / GIM

Question 1

What is the gross rent multiplier (GRM)?

Answer 1

Relates sales price to the monthly rental income

The GRM is a quick way to evaluate the value of rental properties based on their income potential.

Question 2

The GRM only applies to what kind of income?

Answer 2

Rental income only (usually monthly)

This means GRM is specifically designed for properties rented out on a monthly basis.

Question 3

What is the formula with GRM?

Answer 3

Sale price / monthly rent = GRM

This formula helps investors determine the multiplier used to evaluate property value.

Question 4

What is the gross income multiplier (GIM)?

Answer 4

Appropriate for small income-producing property

The GIM is typically used for evaluating properties that generate various forms of income.

Question 5

The GIM applies to what kind of income?

Answer 5

All income a property produces

This includes rental income, service income, and other sources of revenue from the property.

Question 6

What is the formula for gross income multiplier (GIM)?

Answer 6

Sale price / annual income = GIM

This formula allows investors to assess the value of income-producing properties based on total income.