Property Management

What is a loss-to-lease in property management analysis?

AFinancial loss from a defaulting tenant
BThe difference between current market rent and lower contract rent being paid by existing tenants✓ Correct
CLosses attributed to lease termination
DLegal fees from lease disputes

Explanation

Loss-to-lease measures the revenue foregone when current tenants are paying rent below current market rates. It represents potential income increase if leases expire and tenants are renewed at market rates.

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