Common areas are portions of a property that are accessible and used by all owners or tenants. They play a crucial role in the overall functionality and value of residential, commercial, and mixed-use properties.
Curable Depreciation refers to a type of property deterioration that can be corrected at a cost that is less than the value it will add to the property.
Deferred maintenance refers to the practice of postponing necessary repairs and maintenance activities on real estate properties. This neglect typically results from budget constraints or prioritization of financial resources toward other projects, and it consequently leads to physical depreciation.
Maintenance involves the activities carried out to ensure the upkeep, repair, and efficient operation of a property, compensating for wear and tear over time.
A Net Lease is a type of lease agreement where the tenant agrees to pay not only the base rent but also additional costs associated with the property, such as taxes, insurance, and maintenance. This arrangement ensures that the landlord's rent receipt is 'net' of these expenses.
Physical depreciation or deterioration refers to the loss of value in real estate due to the wear and tear of structures over time. This can be caused by a variety of factors including breakage, deferred maintenance, the effects of aging materials, and normal wear and tear.
A Triple-Net Lease (NNN) is a type of lease agreement where the tenant agrees to pay all the operating expenses of the property, including property taxes, insurance, and maintenance, in addition to the rent.
Wear and tear refers to the gradual deterioration of property as a result of regular use, weathering, and age. This inevitable process affects the condition and value of various property assets over time.
