Typically, a landlord will sign a lease with a tenant in exchange for monthly rent. In addition to the rent, the value of the real estate may increase or decrease in value over time.

An increase in value is referred to as “appreciation” and a decrease in value is referred to as “depreciation”.

There are many reasons why a property may increase or decrease in value, most notably:

  • The rate of inflation
  • The growth in the nearby surrounding market

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