Access, learn and discover all terms related to the non-listed real estate sector.
Costs charged by third parties for the administration, technical and commercial management of real estate. A property management engagement typically involves the managing of property that is owned by another party or entity. This includes property advisory services.
Source: Global | Date: 23 March 2020 | ID: D0421 | Version: 5
Costs charged by third parties for guiding the design, approval, and execution of a renovation project, as well as construction process of a development project. These costs may be expensed or capitalised at the property level.
Direct costs related to a specific property acquisition such as transfer tax, legal costs, due diligence or other closing costs. These exclude costs of running an acquisition program such as general and administrative costs, costs incurred in analysing proposals that are later on rejected, joint-venture organizational costs or fees paid to the manager for execution of the deal.
Expenses related to insurance coverage which is often required by lenders which compensates a property owner and/or lender should the property be damaged by fire, windstorm or other peril.
Taxes assessed against real property, usually by a country or municipal taxing authority but sometimes also by special purpose districts and agencies, in proportion to the assessed value of the property. Franchise taxes and excise taxes are already included in the NAV, and thus should be excluded.
Shortfalls between the property operating expenses (incl. repairs and maintenance) incurred by the owner of an investment property and the expenses that are charged to the tenants.