In commercial multifamily real estate, there’s a language that is spoken when you are connecting with brokers, property managers and other investors in the profession. To avoid sounding like a novice, an investor must be fluent with the real estate terminology to be taken seriously. Let’s take a minute to breakdown one of those terms.
A rent premium is the substantial increase in the amount of rent after renovating an apartment. During the underwriting process, an estimate made by the general partner regarding the rent, based on the rental rates of similar or previously renovated units in the area is known as the Rent Premium.
By learning these concepts and terms, you’re separating yourself from the novice investor looking to be more active than passive. Here’s where you can learn more multifamily investing terms.
