Definition of "Capitalization"

Tarus Monroe real estate agent

Written by

Tarus Monroeelite badge icon

Ultima Realty

(1) Multiplying the average gross or net operating income of rental property by an appropriate factor to determine the value of the property. The capitalization rate depends on factors such as neighborhood, stability of rental payments, risk, quality of tenants, historical occupancy rate, etc. (2) To take advantage of something such as capitalizing on a buying opportunity of a house. (3) Charging expenditures made to an asset such as charging the cost of a house with a new roof. (4) Recording leased property as an asset.

 

Need help as a:

I'm interested to:

Buy
Sell
Rent

I work in:

Residential
Commercial
Rental
Reach out to the local professionals for help
 
I agree to receive FREE real estate advice.

Agents, get listed in your area. Sign up Now!

Here's what you'll get:

1. Full zipcodes coverage for the city of your choice for 3 months

2. The ability to reach a wider audience

3. No annual contract and no hidden fees

4. Live customer support/No robo calls

$75 - Any City - 3 Months Coverage
 
loader gif

Please wait ...

I agree to receive FREE real estate advice
I agree with Terms & Conditions and Section 5-5.9.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Giving additional time to conduct some act. An example is a landlord granting a tenant an additional week to make the rental payment. ...

See before-tax cash flow; cash flow. ...

Founded in 1939 and located in Washington, DC, the NAA has 36,000 members with 11 regional groups. It consists of 60 state and local associations of managers, investors, developers, ...

Land located next to water that has and will continue to experience water damage. The land generally is not suitable to build a structure on. In some cases, federal or local government may ...

Association of the owners of all condominium units in a building that is concerned with managing day-to-day matters in the building complex, including the surrounding and enforcing ...

Interest deductible for taxes paid by the taxpayer. It is an itemized deduction on Form (individuals) or Form 1040 (individuals) or Form 1120 (corporations). An example is interest paid on ...

Most generally, the meaning of a blueprint defines a plan or a guide you follow in performing some future activity.  Blueprint in architecture The compilation of a blueprint in ...

The yield after deduction inflation and its effects. It is the return on investment stated in real purchasing power. ...

Room with a bathtub, shower, toilet, and sink. Most homes have more than one bathroom increasing their value. ...

Popular Real Estate Questions