Definition
Capitalization rate — cap rate — is the annual return on a property assuming all-cash purchase. It's the primary metric investors use to compare properties across markets.
Net operating income divided by property value, expressed as a percentage.
Capitalization rate — cap rate — is the annual return on a property assuming all-cash purchase. It's the primary metric investors use to compare properties across markets.
A property with $60,000 NOI and a $1,000,000 value has a 6% cap rate.
Charges beyond base rent that the lease treats as rent for enforcement purposes.
Verifying credit, eviction history, income, and references for a rental applicant.
The pro-rata share of shared-space upkeep charged to commercial tenants.
The state of a resident being past due on rent or other lease charges.
Money held by a third party until a specific condition is met.
The rent a unit would command in the open market.