It refers to the discrepancy between the usable square footage of a rental property and what is reported or listed.
To effectively sell a distressed property, you must understand its market value and be realistic about potential offers.
This concept is particularly important under standards such as ASC 842 and IFRS 16. It transforms how lease agreements are recognized on the balance sheet, depicting them as both an asset and a liability.
The process involves checking both interior and exterior entry points. Inspectors also look for potential nesting areas and conditions that might attract pests.
Real estate brokers and agents primarily use an MLS to share comprehensive property listings. It often enhances cooperation and exposure among licensed professionals. This makes it an effective channel for those seeking broader professional networks and detailed property insights.
In simple terms, it involves assessing the risk and potential returns of investment properties.
Tenant improvement (TI) expenses are costs incurred to modify or upgrade a leased space to meet the specific needs of a tenant.
The leased percentage in multifamily properties is often higher than the occupancy percentage.
Single-Family Home is abbreviated as SFH. It represents a standalone residential structure designed to house one family.
It provides valuable insights into the attractiveness of a property and the effectiveness of the leasing strategy.
This approach enables property managers to reach specific demographics and locations efficiently. They pay only for actual ad interactions, which guarantees immediate visibility and measurable engagement.
A lease-up property manager is responsible for rapidly leasing units in new or renovated buildings. They aim to achieve high occupancy rates as swiftly as possible.
This agreement allows the investor to generate cash flow from rent without the immediate need for a large down payment or property purchase.
This concept is essential for assessing the layout and potential rental income of commercial properties. This is particularly true in settings like office buildings where space efficiency can significantly impact operational costs.
A rent ledger serves as a comprehensive record of all financial transactions between a tenant and a landlord.
Cash for keys is a method where landlords offer tenants a financial incentive to leave the property voluntarily. This bypasses the lengthy and costly eviction process.
Renter-friendly flooring in multifamily properties typically includes options that are easy to install, durable, and aesthetically pleasing.
An absentee owner is typically characterized as someone who owns a property but does not live in, visit, or personally oversee it.
At its core, condo deconversion involves selling an entire condominium building in a single transaction to a real estate investor. The investor then converts the property into rental units.
Forced appreciation in real estate is a strategy used by savvy investors to enhance the value and equity of their properties.
The DCR is calculated by dividing the net operating income (NOI) of a property by its annual debt service requirements.
ADR reflects the average revenue earned per occupied room over a specific time frame. It offers valuable insights into pricing strategies and revenue potential.
The parking ratio is calculated by dividing the total number of parking spaces by the total leasable or rentable square footage, then multiplying by 1,000.
This clause sets a cap on the operating expenses that a landlord covers. Usually, the cap is based on expenses from a predetermined base year.
An encumbrance is any claim or restriction on a property that affects the owner's ability to fully control or sell it.
Deeds are legal documents that transfer ownership of property. Each provides varying levels of protection and assurance to the parties involved.
A marketable title is one that is clear of significant encumbrances, making it acceptable to a reasonable buyer without fearing future legal claims against the property.
A Certificate Backed Mortgage (CBM) is a type of mortgage backed by mortgage-backed securities.
In most cases, a garage does not count as square footage. However, it does count if it has been transformed into a finished and climate-controlled living area.
ATR, or Ability to Repay, plays a crucial role in multifamily real estate financing.
This term refers to a dynamic investment strategy where properties are rented out for short durations, typically less than 30 days.
Accumulated depreciation is best described as a contra asset.
The load factor is the ratio of rentable square footage to usable space.
This clause mandates that when a property is sold or transferred, the borrower must repay the mortgage in full.
For qualifying applicants, a single-close loan merges the financing for new construction and the mortgage into one, easing the process of building a home.
Subleasing involves the original tenant leasing the property to a third party, while still maintaining a contractual relationship with the landlord.
Co-signer services in real estate involve a secondary individual who pledges to repay the mortgage if the primary borrower is unable to do so.
Companies like Jetty Rent and Rent Advance enable this flexibility by paying the rent up front and allowing residents to repay in installments.
This document records every financial transaction between a tenant and the landlord or property management, ensuring that all rent payments and financial obligations are accurately tracked.
This term refers to a residential building or complex that contains more than one distinct housing unit.
Property management fees typically range from 7% to 12% of the monthly rental value.
This written notice must include key details such as the tenant's planned move-out date, the lease termination date, and the precise address of the rental property.
A co-applicant shares financial and legal obligations with the primary applicant. They often boost the overall creditworthiness essential for securing a favorable loan.
A CRP is most commonly used for tax purposes, especially in places like Minnesota, where renters can claim property tax refunds or benefits.
A renter's property tax refund allows renters to claim a portion of property taxes they effectively pay through their rent on their individual income tax return, providing potential financial relief.
Ensuring that all parties have aligned investment strategies and clear ownership interests is crucial to a successful TIC agreement.
A tenant is considered a holdover tenant when they remain in a rental unit beyond the end date of their lease agreement without the landlord's approval.
Bonus depreciation allows real estate investors to accelerate the deduction of depreciation for certain improvements and investments.
For residential rental properties, a roof is typically depreciated over 27.5 years, while commercial properties use a 39-year depreciation period.
Pet screening is a detailed evaluation that often requires tenants to provide information about their pet's type, breed, size, age, and behavior traits.
The standard flooring depreciation life is 27.5 years for most types of flooring that are considered permanent fixtures in a rental property, according to IRS guidelines.
This notice serves to legally establish that the tenant has relinquished their rights to the premises, allowing landlords to take necessary steps such as reclaiming the property or seeking a new tenant.
Eviction-approved apartments are rental properties willing to lease to individuals with prior eviction records.
The core objective is to provide much-needed relief to renters and support landlords through federal funding. State, local, and Tribal governments administer this funding.
The cost of a residential EV charger permit typically ranges from $100 to $500. For commercial installations, it can extend from $300 up to $1,500 or more.
This step is crucial to avoid potential fines or removal orders for unauthorized installations.
Some states, however, allow property managers to operate with a specific property management license instead of a real estate broker's license.
These laws dictate the legal frameworks for constructing these units, impacting aspects such as zoning, permits, and usage rights.
House flipping insurance primarily covers risks like water damage, vandalism, and fire during renovation, ensuring the investor’s peace of mind.
Senior housing properties typically contain between 50 and 150 units to balance operational efficiency with providing comprehensive amenities and personalized care.
This option allows tenants to provide protection to landlords without the need for an upfront lump sum, making it a more accessible solution for many renters.
A 30-day notice generally provides flexibility. On the other hand, a 60-day notice offers more time for both parties to prepare for the change.
It informs a tenant of their landlord’s request for them to vacate the property.
Long-term rentals typically refer to leasing agreements lasting a year or more. They provide tenants with stability and landlords with consistent income.
It formally notifies tenants of an impending rise in rent.
A CLO is a type of securitization. In a CLO, multiple commercial real estate loans are bundled together and sold as securities to investors.
The average demolition cost per square foot for commercial properties typically ranges from $4 to $8.
Disposition software streamlines and automates the process of selling or transferring ownership of real estate assets.
They encompass materials, labor, and equipment. These typically account for a significant portion of a construction project’s budget.
These developer fees typically range from 3% to 5% of the total project cost, encompassing both hard and soft costs.
This legal document is typically the final step after a lease agreement has been breached and a tenant has failed to vacate the premises upon receiving an eviction notice.
Landlords can typically change the locks in situations such as eviction, abandonment, or lease violation to secure the property.
Typically, parking availability and conditions are dictated by the lease or local laws.
Through equity recapitalization, owners can restructure their capital to align with current market conditions and strategic goals.
REITs offer a unique investment structure that combines the benefits of real estate ownership with the convenience of stock market investment.
Real assets offer substantial economic value. They can provide protection against inflation, serving as an effective hedge during uncertain times.
This fee typically covers services such as tenant placement, rent collection, and maintenance and repairs.
Key examples of property management expenses include maintenance costs, management fees, taxes, insurance, and utilities.
Real estate sale proceeds help sellers determine their actual profit from the transaction. This includes subtracting expenses like real estate agent fees, closing costs, and any outstanding mortgage balance.
To calculate ROI, you must consider the ratio of net profit over the total invested capital.
Examples of rental concessions include a free month of rent, discounts on utilities, or waived fees.
Typically, included data fields are tenant names, lease terms, rental rates, payment history, and unit-specific details like square footage and amenities.
The program provides significant tax benefits for investors who redirect capital gains towards real estate or business investments within these zones.
The sales contract outlines this amount, signifying the buyer's commitment to pay the seller for the property.
These properties are strategically chosen to generate income, earn dividends, or appreciate in value over time.
This percentage indicates that a majority of the available units are filled by tenants, reflecting good property management and high tenant interest.
Each unit functions as an independent living space, making it ideal for urban settings where efficient use of land and resources is crucial.
Implementing quarterly maintenance inspections not only helps in reducing maintenance costs but also enhances tenant satisfaction by ensuring a safe and well-maintained living environment.
Strategic upgrades can significantly boost property value and support rent increases. For example, modernizing amenities and enhancing curb appeal are strategic upgrades.
A security deposit is a predetermined amount of money paid by the tenant to the landlord before moving into a rental property. It serves as a financial safety net for the landlord against potential damages or unpaid rent.
Senior housing assets are resources that seniors own. These assets can include cash, stocks, or real estate. They can impact their eligibility for various housing programs.
This agreement allows property managers to make certain decisions on behalf of the property owner. For example, they can handle budgets, ensure compliance with local laws, and manage day-to-day operations.
An apartment pet deposit is a one-time, refundable payment made by the tenant to cover potential damages caused by pets.
They offer convenience and tailored amenities that support both academic success and personal growth.
Property soft costs are the intangible expenses that can significantly impact the overall budget of a construction project.
Understanding how to effectively manage subletting agreements ensures smooth operations and protects the interests of landlords, tenants, and property managers alike.
An SFR is a standalone residential property designed for one household, distinguishing it from multi-family units such as apartments or duplexes.
