PLO
Purchase Lease Option — control now, buy later (or not at all).
Option Fee
Small upfront payment to the owner for the right (not obligation) to buy.
Option Period
How long you have to decide whether to buy.
Strike Price
The agreed price you'd pay to buy at the end.
Monthly Payment to Owner
What you pay the owner each month while controlling the property.
Exercise
Completing the purchase at the agreed price at the end of the option.
ROI
Return on Investment. Profit ÷ cash you put in, as a %.
ROCE
Return on Capital Employed. Annual profit ÷ cash invested.
Cash-on-Cash
Monthly or annual cash you receive ÷ cash you put in.
Yield
Annual rent ÷ property value, as a %.
NOI
Net Operating Income — income after running costs, before finance.
Payback Period
How long until your initial investment comes back.
Margin
Profit as a % of income.
Break-even
The point where revenue exactly covers costs.
Equity
The portion of the property value you actually own.
R2R
Rent to Rent — you rent from the landlord, then re-let for more.
SA
Serviced Accommodation — short or mid-stay furnished lets.
Mid-Stay SA
Serviced Accommodation let for 3–9 months at a time.
HMO
House in Multiple Occupation — rooms let individually.
BTL
Buy-to-Let — standard single-family rental.
AST
Assured Shorthold Tenancy — the standard UK rental contract.
BRRR
Buy, Refurbish, Refinance, Rent — recycle your capital.
Management %
What you pay someone (or yourself) to run the property.
Compliance Cost
One-off cost to make a property legal to let.
EICR
Electrical Installation Condition Report — required every 5 years.
EPC
Energy Performance Certificate — required to let a property.
Gas Safety
Annual gas safety check by a Gas Safe engineer.
Stamp Duty
Tax on property purchase, paid by the buyer at completion.
SDLT
Stamp Duty Land Tax — England & Northern Ireland.
LBTT
Land and Buildings Transaction Tax — Scotland.
LTT
Land Transaction Tax — Wales.
Article 4
Council restriction on converting houses into HMOs without permission.
Occupancy
% of time your unit is filled.
Void Period
Time when the property is empty and you earn nothing.
Changeover
Cleaning and reset between SA guests.
Finder/Platform Fee
% taken by the channel that brings you the booking.
Sourcing Fee
What an investor pays you to find and package a deal.
GDV
Gross Development Value — what the property is worth when finished.
LTV
Loan to Value — mortgage size as a % of property value.