IONROI Glossary

Property management glossary

Plain-language definitions of key property investment and management terms, from gross yield to Ejari.

Finance and Returns

Net Rental Yield: Annual rental income minus all operating expenses, divided by the property value.
Gross Rental Yield: Annual rental income as a percentage of the property purchase price.
Capitalization Rate: Net operating income divided by the property value, used to compare investment properties.
Net Operating Income (NOI): Total rental income minus operating expenses, before mortgage payments and taxes.
Cash-on-Cash Return: Annual pre-tax cash flow divided by total cash invested, showing real cash yield.
Return on Investment (ROI): Net profit as a percentage of the total amount invested in a property.
EMI (Equated Monthly Instalment): Fixed monthly mortgage payment covering both principal repayment and interest.
Mortgage: A loan secured against a property, repaid in monthly instalments over a fixed term.
Down Payment: The upfront cash portion of a property purchase, typically 20-25% of the purchase price.
Unrealized Gain: The increase in a property's market value above its purchase price, not yet received through a sale.

Tenancy Agreement: A legally binding contract between landlord and tenant defining lease terms.
Ejari: Dubai's mandatory tenancy contract registration system managed by RERA.
Security Deposit: Refundable amount paid by a tenant at the start of a tenancy as protection against damage.
Rent Arrears: Unpaid rent that is overdue beyond the contractual payment date.
Strata: A system of property ownership for multi-unit buildings where owners share common areas.

Occupancy Rate: The percentage of time a rental unit is occupied versus available for rent.
Service Charge: Annual fee paid by property owners to cover maintenance of shared building facilities.
Lease Renewal: The process of extending an existing tenancy agreement for a further period.
Property Management: The operation, control, and oversight of real estate properties on behalf of owners.

Chiller-Free: A building where district cooling costs are included in the service charge, not billed separately.

IONROI calculates your gross yield, net yield, cash-on-cash ROI, and more, so the numbers are always current.