TWM Services / Glossary

Glossary

The words the tools use

Short definitions only. None of these are market figures. Open the linked calculator and put in your own example.

NOI
Net operating income. Income minus operating expenses, before debt. NOI calculator
Cap rate
NOI divided by price. A way to talk about value, not a promise of what a facility is worth. Valuation tool
DSCR
Debt service coverage. NOI divided by the loan payment. Lenders often want this above a target. Loan sizing
Economic occupancy
Rent actually collected, divided by rent the facility could collect at street rates if full. Often lower than the unit-count occupancy. Economic occupancy
ECRI
Existing-customer rate increase. A raise on people already storing, not the street rate for new move-ins. Rate-increase impact
Concession
A discount to get a move-in, such as a free month or a percent off. It has a real cost over the stay. Concession cost
Loss to lease
The gap between the street rate and the rent occupied units are actually paying. Economic occupancy
Cash-on-cash
Cash left after debt, divided by the cash you put in. A year-one check, not a forecast. Offer ladder