Part 5 Flashcards
(11 cards)
Contract rent
actual rental income specified in a lease
Effective rent
total base rent, or what they actually collect.
Fixed expenses
operating expenses such as property taxes and insurance that generally do not vary with occupancy.
Gross lease
the land lord pays all of the operating expenses.
Market rent
the most probable rent that a property should bring in a competitive and open market
Net lease
the tenant pay all of the operating expenses
Scheduled rent
income due under existing leases
Vacancy and collection loss
allowance for nonpayment of rent
Variable expenses
operating expenses that generally vary with the level of occupancy or the extent of services provided
Rent
an amount paid for the use of land, improvements, or capital good
Operating expense ratio
operating expenses / effective gross income
