Term
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Definition
| the amount of rent specified in a lease |
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Term
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Definition
| The amount of rent that the property should be capable of producing |
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Term
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Definition
approach based upon the premise that there is a relationship between the future income that a property should generate and the value of the property
Net income % (rate x value) |
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Term
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Definition
| factors within the property that the markeplace views as less than desirable. This may be curable or incurable. ex: No sink in a bathroom, outdated architectural design |
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Term
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Definition
| Incurable factors external to teh property that the marketplace views as less than desireable. Ex. Bar next door, in line of airport flight path, loud road outside. |
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Term
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Definition
| comes from normal wear and tear, neglect, or vandalism. May be curable or incurable |
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Term
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Definition
| today's cost of reconstructing an improvement with EQUIVALENT USEFULNESS sometimes figured by # of square feet(using exterior dimensions) X construction cost per square foot in your area |
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Definition
| Todays cost of reconstructing an EXACT REPLICA of the improvement |
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Term
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Definition
an approach used to determine the reproduction or replacement cost of an improvement.
Subtract teh accrued depreciation, functional and economic obsolescense, and deterioration. This = the depreciated value of the improvement. Add the land value of the improvement as if vacant. This figure ='s the value using cost approach. |
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Term
| Market Comparision Approach To Value |
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Definition
Estimates the vlaue by analyzing the sale of comparable properties. 3 properties is usually considered minimum.
Comparables are based on the following criteria:
Time of sale -try to get w/in last 6mos
Physical Characteristics - similar style to subject
Location - close proximity |
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Term
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Definition
| present worth of future benefits, eg. being near schools |
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Term
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Definition
| the amount someone paid for a property |
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Term
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Definition
| the expenditure required to produce the improvement |
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Term
| Comparative Market Analysis |
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Definition
| CMA is information a salesperson provides which is taken from the marketplace. It contains data regarding similar properties which have sold or are currently on the market as well as ones that did not sell during their listing term. The seller can then use this info to make a decision regarding the asking price of their property |
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Term
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Definition
| an oral or written statment or opinion of value at a specific moment in time. Only a Certified Real Estate Appraiser can legally appraise Real Estate in PA |
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Term
| Landlord Tenant Act of 1951 |
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Definition
During first year of lease, security deposit may not exceed two months rent
After first year of lease security deposit may not exceed one month's rent
After 2nd year deposit must be placed in registered interest bearing account
The 3rd anniversary date of the beg. of lease, tenant must receive interest on the deposit
After 5 years the deposit may not be increased
At termniation of lease:
Tenant must notifiy landlord of forwarding add. Landlord must w/in 30 days of tenant vacating or termination of lease, provide the tenant w/an explanation/account of deposit. Tenant due any monies left after paying for damage/expenses |
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Term
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Definition
1. tenant defaults on lease terms
2. lessor provides written notice to lessee
3. Lessor sues for possession and or rent or damages
4. court orders eviction through a judgement for possession
5. Court order is enforced by sheriff |
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Term
| constructive eviction process |
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Definition
1. premises is unihabitable due to the neglect/inaction of the lessor
2. lessor is notified and fails to correct
3. tenant vacates teh property and terminates the lease |
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Term
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Definition
| rent is based in whole or in part on a percentage of the gross receipts of the business |
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Term
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Definition
| rent increases or decreases are tied to an index, ex: consumer price index |
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Term
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Definition
| rent increases or decreases at a fixed amount at set intervals ex: An icecream stand's lease states that during the fall rent decreases wherease it increases at spring. |
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Term
| Triple net lease - net net net lease |
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Definition
| Lessee pays rent, maintenance, operating expenses, insuance, and property taxes |
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Term
| Double net lease - net net lease |
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Definition
| lessee pays rent, maintainence, operating expenses, and insurance OR property taxes |
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Term
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Definition
| Lessee pays rent, maintenance, and operating expenses. Lessor pays insurance and property taxes |
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Term
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Definition
| the rent that the lessor receives is the gross income. The lessor pays for maintenance, operating expenses, property taxes and insurance. |
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Term
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Definition
1. the names of the parties
2. a description of the property an unit to be rented
3. an agreement whereby the lessor agrees to convey used to teh lessee, who accepts possession
4. the amount of the rent and provisions for payment
5. the beginning and ending dates of the lease
6. signatures |
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Term
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Definition
| a contract that conveys rights in the leased propery |
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Term
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Definition
| One who pays rent to utilize a property, *owns a leasehold estate |
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Term
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Definition
one who conveys the right to use a property in exchange for rent
The lessor owns a leased fee estate (ownership of the property minus rights conveyed in lease) The lessor also retains the right to get the property back ant the end of the lease.. has a reversionary interest |
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Term
| Tasks involved in Leasing |
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Definition
1. marketing
2. showing the space to potential tenants and responding to questions and concerns
3. establishing criteria and implementing procedurse for tenant selection
4. negotiating leases |
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Term
| Property management contract |
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Definition
authorizes a broker to manage a property on behalf of the owner.
Includes:
a description of the property
names of the parties -owner+managment company
Beginning and ending dates
Responsibilities of owner and manager-Who does what?
Authority of manager - specifies if they can order repairs or when to contact owner
Management fees
Signatures |
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Term
| Property management tasks include |
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Definition
Physical: inspects of interior and exterior of property, schedule maintenance and repairs, supervies staff or contract outside services, implement security measures
Financial: collecting rents and sending late notices, recommending ernt adjustments and cost saving programs, paying bills, keeping financial records and preparing reports, maintaining escrow and other accounts, recommending teh sale of the property at an appropriate time
Tenant relations: receive and respnod to tenant requests and complaints, initiate communication between tenants and management |
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