Gross rent
The total rent a property collects before any expenses. Often quoted as monthly or annual gross rent when investors talk about a property.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
Gross rent is the total rent before any expense, and it is the number investors quote first when they talk about your rental. It is also the number the 1% rule and the gross rent multiplier are built on.
Part 2 of 4
A simple example
Your duplex collects $1,100 and $1,150 a month. Its gross rent is $2,250 a month, or $27,000 a year.
| The number | What it is |
|---|---|
| Gross rent, $27,000 | Everything collected |
| Net operating income, about $16,000 | After taxes, insurance, repairs and management |
| Cash flow, about $4,000 | After the buyer's mortgage as well |
Gross rent is the top of the ladder. Every number an investor cares about is a rung below it.
Part 3 of 4
What people get wrong
That gross rent is income. It is revenue; the income is what is left after the building is paid for.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
One piece of your sale. Here is where all the pieces live.
In your room, this word explains itself where it appears.
Keighbor keeps your whole home sale in one place and defines every term like this one right where you meet it, in the step you're on. Free to set up, with or without an agent.