Chapter 2 Flashcards
A written document in which the rights to use an occupied land or structures are transferred by the owner to another for specific. In return for specified rent
A real estate lease
The amount derived when contractor in exceeds market rent
Excess rent
Occurs when market rent is greater than the contract rent
Deficit rent
Used as a common denominator to compare leases with different provisions
Effective rent
The relationship between gross income and the value of the property
 Gross income multiplier
This process can be reconstructed 
Income and expense statement
Capital expenditures to accommodate specific needs of a tenant
Tenant improvements
Operating expense ratio formula
Total expenses / effective gross income
Improper operating expenses
Depreciation
debt service
owners personal expenses
income taxes
