Property Management
What is 'economic obsolescence' as it applies to Delaware investment property management?
APhysical obsolescence caused by economic recession
BLoss in value from external factors like declining neighborhood, oversupply, or economic downturns that reduce demand or rents✓ Correct
CObsolescence caused by outdated property management practices
DEconomic loss from high tenant turnover
Explanation
Economic (external) obsolescence is loss in property value caused by factors outside the property — such as neighborhood decline, economic downturns, oversupply in the rental market, or changes in employment in the area.
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