What does 'ROI' stand for in property management?

'ROI' stands for Return on Investment in property management. This term is vital for property managers and real estate investors as it measures the profitability of an investment property. It is calculated by taking the net profit from the investment and dividing it by the total cost of the investment, then multiplying by 100 to get a percentage. This metric allows property managers to assess how effectively their investment is generating returns and provides a basis for comparing different investment opportunities. Understanding ROI helps in making informed decisions regarding property acquisitions, renovations, and management strategies, ultimately aiming to enhance profitability and performance in the real estate market.