Capitalization
Definition of "Capitalization"
(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.
Popular Real Estate Terms
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Representation on a flat surface of any region that depicts the elevation of that region. ...
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Amount required to payoff the full balance of the mortgage today. The amount equals the principal balance plus any prepayment penalty. ...
Provision in a lease agreement in which the lessee is given the right to buy the property at the end of lease term. In many cases, the option price is attractive to encourage acquisition. ...
Permission to do something that differs from the basic zoning requirement. An example is a homeowner receiving special authorization to build a two-family house in a single family zoned ...
Way to determine the capitalization rate of income property for valuation purposes by weighting the rate of interest and source of financing in percentage terms. ...
Bottom of a frame such as a window sill. ...
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