Expense and Rent Strategies in Real Estate Management
Chinloy, Peter, Maribojoc, Eric, The Journal of Real Estate Research
Peter Chinloy* Eric Maribojoc**
Abstract. A model of the real estate market is developed where the rent-vacancy tradeoff also embeds selections on expenses. High expenses and rents or low expenses and rents are explicit strategies, positioning properties along an efficient isoprofit frontier. Instead of a rent-vacancy trade-off, the operator can select either gross or net rent, or some combination as an offset for vacancy. This macrostructure is more in keeping with observed real estate markets, where some managers focus on net operating income, and others on effective gross income. Empirical results for apartments in Portland, Oregon supports the hypothesis that expenses and …
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Publication information: Article title: Expense and Rent Strategies in Real Estate Management. Contributors: Chinloy, Peter - Author, Maribojoc, Eric - Author. Journal title: The Journal of Real Estate Research. Volume: 15. Issue: 3 Publication date: January 1, 1998. Page number: 267+. © American Real Estate Society Oct-Dec 2008. Provided by ProQuest LLC. All Rights Reserved.
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