Income Property
Definition
- A property that is developed or improved for the purpose of generating income. Also referred to as "non-owner occupied property" or "rental property."
Synonyms
rental home, rental unit, leased real estate, apartment, condominium
Alternate Spellings
Rental property, Non-owner occupied, Non-owner occupied property
Related Terms and Acronyms
- Capital Gains Tax (CGT) — Acronym, Canada,
- A tax on profits from the sale of real estate or investments.
- Eviction — Definition,
- The act of kicking someone out of a property, usually for violating terms of a lease.
- Income Approach — Definition,
- A step in the valuation process of an income property. The value is reached by estimating the annual income minus an allowance for vacancies and bad debts and then subtracting annual operating expenses, real estate taxes, and insurance premiums to obtain the net operating income. This is then converted by capitalization into a capital value.
- Investment Income — Definition,
- Income that is earned from investments such as interest, dividends, and capital gains.
- Lessor — Definition,
- The person who grants a lease.
- Non-owner Occupant — Definition,
- A borrower who purchases a property for investment or rental purposes and will not occupy the property.
- Property Tax — Definition,
- A levy by a city on real estate and personal property whose amount varies depending on the property's value.
- Proprietor — Definition,
- The owner of a business or property.
- Rental Property (RP) — Acronym, Important,
- Property that is occupied by rent-paying tenants and not the owner.
- Sale-leaseback — Definition,
- A transaction in which the seller transfers the title to the buyer, then rents the property from the new owner. Generally not done in Canada, more an American practice.
- Unearned Income — Definition,
- Income such as interest, dividends, capital gains or rents, as opposed to earned income, such as wages, tips and salaries.
