Understanding Rent Calculation and
Financial Concepts Study Guide with
Solutions
Market Value - ANSWER The price at which an asset would sell in a competitive and
open market.
Investment Value - ANSWER The value of an asset to a particular investor, based
on their specific investment requirements and expectations.
Insurable Value - ANSWER The value of an asset for insurance purposes,
typically representing the replacement cost.
Liquidation Value - ANSWER The value of an asset if it had to be sold quickly,
often significantly lower than market value.
Gross Rent Multiplier (GRM) - ANSWER A method for estimating the value of a
property by dividing the sale price of a similar property by its gross potential rent.
Lease Term - ANSWER The length of time for which the lease agreement is valid.
Occupants - ANSWER People authorized to live in the apartment but who are
not signatories on the lease agreement.
Security Deposit - ANSWER A sum of money paid by the tenant to the landlord as
security against potential damages to the property.
Financial Concepts Study Guide with
Solutions
Market Value - ANSWER The price at which an asset would sell in a competitive and
open market.
Investment Value - ANSWER The value of an asset to a particular investor, based
on their specific investment requirements and expectations.
Insurable Value - ANSWER The value of an asset for insurance purposes,
typically representing the replacement cost.
Liquidation Value - ANSWER The value of an asset if it had to be sold quickly,
often significantly lower than market value.
Gross Rent Multiplier (GRM) - ANSWER A method for estimating the value of a
property by dividing the sale price of a similar property by its gross potential rent.
Lease Term - ANSWER The length of time for which the lease agreement is valid.
Occupants - ANSWER People authorized to live in the apartment but who are
not signatories on the lease agreement.
Security Deposit - ANSWER A sum of money paid by the tenant to the landlord as
security against potential damages to the property.
