income stream
Income Stream
income stream
A steady flow of money from a property.When evaluating the property, one has to evaluate the strength and durability of the income stream.
Example: Is the tenant a national tenant with good financial strength, excellent prospects for continued health, and a 20-year lease on the property with rent adjustments annually to reflect cost-of-living increases, or is the tenant a start-up business with a 1-year lease in an area already saturated with similar businesses? Those two income streams are markedly different from each other.