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