Definition of "Curable depreciation"

Ron Utterback real estate agent

Written by

Ron Utterbackelite badge icon

Keller Williams First Atlanta

Correcting depreciation by making improvements at less cost than the value added. For example, the management of an aging strip shopping center makes a decision to refurbish the windows and walkway at a cost of $2,000 per unit. Management estimates this will provide a rent increase of $100 per unit. The current neighborhood gross rent multiplier is 120. Therefore, the value added by the improvements is 120*100=$12,000 per unit. This is curable depreciation since the $12,000 unit value added more than compensates for the $2,000 unit cost of the improvements.

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

Identifying marker of a company. Attesting to something such as the validity of an instrument used in real estate. ...

Real estate sales contract where possession and use is provided to the buyer, but the deed is kept by the seller until the full purchase price is met whereupon the title is placed in the ...

Siding made out of aluminum, plastic derivates, or cement asbestos having ridges and valleys which is attached to the sides of buildings. ...

Also known as adjoining landowners or abutting owners, adjoining owners are property owners whose property touches a common property. The definition of adjoining property owners is those ...

Under law, a warranty in effect even if not expressly stated. It provides that real property sold is warranted to be appropriate for sale and is in proper condition even if not stated, ...

What is the meaning of a story, and what is it good for? The story definition is a floor, level, or deck in a construction or building.  What does story mean in real estate? A real ...

Lease that requires periodic equal rental payments that will not charge for the term of the lease. A straight lease is also known as a flat lease. ...

Member Of the American Institute of Real Estate Appraisers. ...

Derogative term describing a high-pressure telemarketing office where sales personnel often use extremely exaggerated claims as well as intense sales practices to convince targets clients ...

Popular Real Estate Questions