Lesson 23 – Ch 17 Vocabulary Quiz

An asset that is expected to generate a return (a profit)

The mix of investments owned by an individual or company

An asset’s ability to be converted into cash quickly

An increase in the value of an asset; generally due to either inflation or to an increasing scarcity of or demand for the asset

Using borrowed money to invest in an asset. If the asset appreciates, the investor earns money on the money borrowed as well as the money invested.

Spendable income; the amount of money left after all of the property’s expenses have been paid

When someone other than the property owner supervises the property’s operation

A list of the rental rates for units in a given building

A property management expense that does not vary

A property management expense that varies depending on current management needs

A contract for possession of real estate in return for payment of rent

A lease provision that ensures automatic renewal of the lease unless the tenant or the landlord gives the other party notice of termination

A periodic report showing the total money received and disbursed, and the overall condition of the property during a given period

A report on rent collections; a list of the total amount of rent earned, both collected and uncollected.

A listing of all of a property’s expenses paid during a specific operating period.

A listing of all of a property’s expenses paid during a specific operating period

A program of regular inspection and care to prevent problems or provide for their immediate repair.

Ongoing repairs that are made to a building and its equipment to restore it to good operating condition

Ordinances setting maximum limits on the amount of rent that may be charged

A lease in which the tenant is obligated to pay a fixed sum of money as rent and the landlord is responsible for all other expenses.

A lease in which the rent is a fixed amount that is increased periodically on set dates

A lease in which the rent is tied to an index such as the Consumer Price Index; rent increases whenever an increase in the index occurs.

A lease in which the rent is based on a percentage of the gross or net income from the tenant’s business

A lease in which the tenant pays a fixed rent amount in addition to some or all of the operating expenses

A long-term lease of vacant land on which a tenant constructs and owns improvements