The total amount of money that has been earned from renting out a real estate property over a specific period of time.
It is calculated by adding up all the rental income received from tenants, and then subtracting any expenses associated with the property, such as property taxes, insurance, and maintenance costs. The resulting number is the cumulative net rental income, which represents the overall profitability of the property as a rental investment.
Property can produce a certain amount of money in rental income for its owners, but it also has running costs. When you look up for assessing the viability of an investment or carrying out a financial appraisal of an investment opportunity you need to take that factor into account.
The running cost generally includes management fees, refurbishment, repairs, maintenance costs, and tax on your rental income.The gross rental income minus the costs are the resulting sum of money you are actually left with, also known as net rental income.
For MetaWealth™ real estate assets, the ROI forecasted in the app is the net rental income you will gain as a token holder for fractions of that real estate asset, because taxes and other running costs are already handled by us on your behalf.
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