Which of the following is an example of a common unit of comparison for rentals?

The concept of "gross income multiplier" serves as a common unit of comparison for rentals because it is a tool used by real estate professionals to assess the value of rental properties in relation to their gross income. The gross income multiplier is calculated by taking the sale price of a property and dividing it by its annual gross rental income. This ratio helps investors understand how quickly they can expect to recover their investment based on the income generated from the property. It simplifies comparisons across different rental properties by providing a straightforward metric that captures the relationship between income and property value.

In contrast, average tenant income is a demographic measure that provides insight into the financial capabilities of tenants but does not directly assess property value or rental income. Market lease value refers to the amount for which a property can be rented in the current market, which is useful for establishing rental rates but doesn’t serve as a comparative metric for investment evaluation. A property management fee is an operational cost associated with managing real estate and does not relate to assessing property among different rentals. Thus, while all these concepts are relevant to real estate and property management, the gross income multiplier is specifically designed to compare rental investments efficiently.