Gross to net Definition | Legal Glossary | LexisNexis
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GLOSSARY

Gross to net definition

What does Gross to net mean?

This is the ratio by which gross rental income is reduced to a net sum after the developer or investor has paid for the running and maintenance of the building. Unlike commercial buildings, tenants in residential blocks are not charged a separate service charge. The efficiencies that can be achieved in minimising the Gross to net ratio are key factors in the design and specification of BTR assets. This will be further emphasised as confidence in valuation based on net operating income increases

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