Net effective rent is the actual average rent a tenant pays over the full term of a lease after accounting for any concessions the landlord has offered.
Vacancy loss is the income a rental property fails to generate because one or more units or spaces are unoccupied during a given period. It is at a percentage of GPR
Economic occupancy is a metric that measures the percentage of a property's gross potential rent that is actually being collected.
Cash on cash return is a real estate metric that measures the annual pre-tax cash flow a property generates as a percentage of the total cash invested.
Gross potential rent is the maximum rental income a property could generate if every unit were occupied at full market rent for an entire year with no vacancies
The exclusion of debt service from NOI isn't arbitrary. It's the result of a deliberate design choice that makes NOI a useful and universally applicable metric
Operating income tells you how the business performs on its own terms. Net income tells you what the owners keep after the cost of operating the business
Multifamily underwriting is the process of analyzing an apartment property's income, expenses, and projected returns to determine if it's a sound investment.
Equity multiple is a real estate investment metric that measures the total return on an investment relative to the amount of equity invested.
