Chapter 23 - The Income / Investment Approach Flashcards
1
Q
What is Gross Realized Revenue
A
Gross potential revenue + other income - Vac and bad debt
2
Q
What are Operating Expenses?
A
Real property & Insurance policies
Fees that must be paid regardless of the level of occupancy
3
Q
Repairs that are done on a periodic basis are known as?
A
Cyclical Repairs
4
Q
When appraising an income-producing property using the income approach, how are Gross Potential Rents best determined?
A
Based on current market rents of similar properties
5
Q
How is an estimate of Gross Potential Rent achieved?
A
Comparing rents for recently leased similar spaces
