Renegotiate
Legally revising the provisions, terms or conditions of a contract.

Renegotiated Rate Mortgage (RRM)
This fixed rate mortgage expires at pre-established times, which allows for renegotiation of the terms of the mortgage. Also referred to as a rollover mortgage, this mortgage comes due in a balloon payment, which may be paid or refinanced at current rates.

Renewal Option
A right without any obligation, of a tenant to continue a lease at a specified term and rent.

Renovate
General term to cover changes and upgrading of an existing property.

Renovation Cost
Total amount expended to change or upgrade an existing property.

Rent
Amount paid from a tenant to a landlord for the use of property.

Rent Loss Insurance
Policy covering any loss of rent or rental value in the event that damage renders the property uninhabitable.

Rentable Area
Floor space in a building that is actually under lease and able to be rented to tenants. Non-leasable space would be hallways, building foyers, areas devoted to utilities, elevators, etc. Also referred to as net leasable area.

Rental Agency
Business that aids a tenant in finding the best rental property or a landlord to find a good tenant.

Rental Concession
Discounts and reduction in rental charges to attract new tenants or to keep present ones. Concessions may also be in the form of some free rental or a large allowance to adapt the space to the needs of the tenant. High occupancy will induce a large retailer to relocate or a bank to offer better financing.

Rental Contract
A lease. A contract providing for the payment of rent by the lessee to the lessor, for the use of real property for a stated time period.

Rental Rate
Periodic charge for each rental unit for a specified period of time.

Rental Value
Valuation of the worth of a rental property by considering the net income derived from the property and a capitalization rate.

Rent Bid Model
Model based on an assumption that space should be controlled by the activity that offers the highest bid. Maximizes usefulness.

Rent Control
Governmental policy, which governs the rate that may be charged to tenants for space rented.

Rent-Free Period
That portion of the term of a lease where no rent is required, usually as part of a concession.

Rent Escalator
Lease provision, which allows the landlord to raise the rental rate to account for inflation or higher interest rates.

Rent Multiplier
Method used to compute the price of an income-producing property by dividing the asking or market price of the property by the current gross rental income. If the current gross rental income is $30,000 and the asking price is $300,000, the gross income multiplier is 10. Also referred to as Gross Rent Multiplier.

Rent Roll
List of tenants including the lease rent and lease expiration date.

Rent-Up Period
Amount of time needed to fully occupy newly constructed properties.

Renter's Insurance
Policy for renters, which covers their possessions.

REO
Real estate owned. Property acquired by a lender, through foreclosure, which is held as inventory.

Reorientation
The changing of the market appeal of a property.