A rate of return of a rental vehicle based on comparing the purchase price or market value to the yearly gross rent. The gross rent multiplier represents the number of years it would take for the yearly gross rent to add up to the original purchase ...
A rate of return of a rental vehicle based on comparing the yearly net operating income (NOI) to the purchase price or market value. Since the cap rate does not take into account loan payments, it can be used to compare rental vehicles irrespective ...
The amount you will lose in a given time period due to inactivity/underutilization/vacancy. While inactivity isn't a direct expense in the sense that you do not pay it to anyone, it will result in a decrease in collected gross rent. How Is It ...
Total income generated by a rental vehicle, less the inactivity expense. Sometimes also called effective gross income (EGI). How Is It Calculated? Operating Income = Gross Rent - Vacancy Expense + Other Income