Rental income - Financial definition

Rental income refers to the revenue generated by leasing out property, assets, or equipment to tenants or lessees. It encompasses the periodic payments made by tenants to the property owner in exchange for the right to occupy or use the rented space or asset. Rental income is a crucial component of real estate investment, providing a steady stream of cash flow to property owners. It can vary based on factors such as location, property type, market demand, and lease terms.

Rental income can be derived from various types of properties, including residential apartments, commercial spaces, industrial buildings, and vacation rentals. In addition to providing passive income, rental properties offer potential tax benefits and opportunities for capital appreciation. Investors often analyze rental income along with other financial metrics to evaluate the performance and profitability of real estate investments.