Method used to compute the price of an income-producing property by dividing the asking or market price of the property by the current gross rental income. If the current gross rental income is $30,000 and the asking price is $300,000, the gross income multiplier is 10. Also referred to as Gross Rent Multiplier.
Rent roll
List of tenants including the lease rent and lease expiration date.
Rent-free period
That portion of the term of a lease where no rent is required, usually as part of a concession.
Rent-up period
Amount of time needed to fully occupy newly constructed properties.
Rentable area
Floor space in a building that is actually under lease and able to be rented to tenants. Non-leasable space would be hallways, building foyers, areas devoted to utilities, elevators, etc. Also referred to as net leasable area.
Rental agency
Business that aids a tenant in finding the best rental property or a landlord to find a good tenant.
Rental concession
Discounts and reduction in rental charges to attract new tenants or to keep present ones. Concessions may also be in the form of some free rental or a large allowance to adapt the space to the needs of the tenant. High occupancy will induce a large retailer to relocate or a bank to offer better financing.
Rental contract
A lease. A contract providing for the payment of rent by the lessee to the lessor, for the use of real property for a stated time period.
Rental rate
Periodic charge for each rental unit for a specified period of time.
Rental value
Valuation of the worth of a rental property by considering the net income derived from the property and a capitalization rate.
