Search or browse key terminology used on Seedio to help investors and property managers.
- Annual Appreciation
- Projected growth in the market value of the asset over one year, calculated as (sale price minus purchase cost) divided by total investment cost. Example: A property bought for €1,000,000 with €100,000 in fees, sold later for €1,500,000 yields 36.4% appreciation.
- Yearly Investment Return
- The average annual return over the investment period, combining net rental income and annual appreciation. E.g., a 50% total ROI over five years represents about 10% per year.
- Dividend
- The payout an investor receives from rental income after expenses, divided by the number of investors.
- Gross Yield
- The projected annual percentage return before expenses, calculated as rental income divided by property price. E.g., €100,000 rent on a €1,000,000 asset equals 10% gross yield.
- Net Yield
- The projected annual percentage return after deducting all expenses, e.g., a €75,000 net income on a €1,000,000 property is a 7.5% net yield.
- Funding Target
- The total capital required to purchase a property, including fees. E.g., a €1,000,000 price plus €50,000 costs equals a €1,050,000 funding target.
- ROI (Return on Investment)
- The ratio of total gains (sale price – purchase price + rental income) to original purchase price over the holding period.
- SPV (Special Purpose Vehicle)
- A legal entity created to acquire and own a single property; investors buy shares in the SPV proportional to their investment.
- Appreciation
- The increase in value of an asset over time.
- Extension Period
- Additional time a fund manager may extend the fund’s term beyond its original duration, typically 6–12 months.
- Fund Duration
- The predetermined life span of a real estate fund before liquidation.
- Unit
- A share in a real estate investment fund, representing a proportional stake in its assets and income.
- Unit Price
- The cost to purchase one fund unit.
- Property Manager
- A professional or company that oversees daily operations, maintenance and tenant relations for a property on behalf of the owners.
- Occupancy Rate
- The percentage of time that a rental property is occupied during a given period.
- Maintenance Reserve
- Funds set aside from rental income to cover ongoing repairs, replacements and building upkeep.
- Tenant Screening
- The process of evaluating prospective tenants based on credit history, background checks and references.
- Service Charge
- Fees paid by property owners to cover shared building expenses such as security and cleaning.
- Capital Expenditures (CAPEX)
- Major property improvements or purchases that extend the life of the asset or increase its value, such as roof replacement.
- Leasing Fees
- Charges for marketing a property, sourcing tenants and signing leases, often calculated as a percentage of annual rent.
- Property Valuation
- Professional assessment of a property's market value, typically performed by a licensed appraiser.