Glossary

These are some of the most common property investment terms used, which property investors may not come across in everyday life.

Some of these terms can have more than one meaning, so we have applied the definition which applies most closely to the context it will be applied for, relating to property investment. If you believe there are any other property investment terms which are not included below but would benefit property investors, please contact us with further details of the term and relevant definition for our consideration.

Occupancy Rate

Indicates in days, weeks, months or as a percentage per annum how often the investment property or properties are let for investment purposes. Generally speaking, the higher the occupancy rate, the higher the rental income will be. The term “Occupancy Rate” is used more often when referring to a property investment opportunity within a hotel or resort, rather than a traditional buy-to-let investment property where a tenant enters into a mutually agreeable tenancy agreement. The Occupancy Rate is a very important aspect of the initial property investment opportunity, as future rental income predictions will be based on this figure/percentage. The values of many property investment opportunities of a more commercial nature are linked to the achievable occupancy rate and rental rate charged, making extensive research into this area a very important factor.

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