Category: Real Estate Economics

What is economic rent in real estate?

Economic rent in real estate is the amount of money that a property owner can charge a tenant or renter above the amount of money needed to cover the cost of owning the property. It is a financial benefit to the property owner, as it is money that is not required to be paid for the upkeep of the property. Economic rent is determined by the market conditions and the demand for the property. The amount of economic rent that a landlord can charge is typically higher than the cost of the mortgage and other expenses associated with the property. Economic rent can be a great source of income for the owner of the property, as it is money that is not required to be paid for the upkeep of the property.