# Rental Property

*Real Estate — Finicade finance glossary*

A rental property is real estate held to produce income rather than to live in. Its return has four parts: rent, appreciation, principal paydown by the tenant, and tax benefits from depreciation. It's frequently marketed as passive and isn't — it's a small business with tenants, maintenance and regulation, which is precisely what a management fee of 8–12% of rent is buying when you outsource it.

**Also known as:** buy to let, investment property, income property

**Related terms:** [Rental Yield](https://finicade.com/glossary/rental-yield), [Cash-on-Cash Return](https://finicade.com/glossary/cash-on-cash-return), [Depreciation](https://finicade.com/glossary/depreciation), [Property Management](https://finicade.com/glossary/property-management), [Lease Agreement](https://finicade.com/glossary/lease-agreement)

Source: https://finicade.com/glossary/rental-property