5.1 Glossary of Terms
Platform Owners – Refers to the entity that manages and operates the entire Tokenizer.Estate instance. Platform owners have full control over system configurations, integrations, and overall management.
Staff – Employees or team members of the platform owner company who work within the Tokenizer.Estate platform to manage units, investors, transactions, and other operational tasks. Staff possess admin accounts in the administrative panel.
Users (also referred to as Investors) – Individuals who register on the investor backoffice to purchase and hold real estate tokens, receive dividends, and interact with their portfolio.
Projected Total Income – Annual returns including rental income and value growth
Value Growth – Anticipated increase in the value of an asset over a year
Projected Rental Income – Annual returns from property rent
Total Investment Value – Total amount of all costs required to implement an investment in a project
Legal Fees – Legal expenses associated with the execution of a transaction. They may include payment for lawyers’ services, notary fees, preparation and verification of documents, as well as other legal services necessary for the conclusion of the transaction
Registration Tax – Tax on the registration of property rights to real estate. This tax is collected by government agencies when registering property rights to a new owner
Upfront DAO LLC Fees – Initial costs required to set up a DAO LLC for real estate investments. These fees cover legal registration, administrative setup, and ensuring the entity is fully compliant for managing property transactions
Maintaining Costs – Expenses related to regular maintenance and keeping the property in good condition. This parameter also displays expenses related to the costs of managing the property
Monthly DAO Accounting Service – Monthly expense for accounting services required to property record financial transactions, prepare reports, and comply with tax laws within the DAO LLC. These services may include bookkeeping, preparation of financial statements, tax calculations, and auditing
Property Management – The professional management of real estate properties, including tasks like tenant screening, rent collection, maintenance, and ensuring compliance with legal and financial regulations
Maintenance Reserve – Maintenance reserve is a reserve fund intended to cover unexpected expenses for repairs and maintenance of real estate
Utilities – Essential services required for a property’s operation, such as electricity, water, gas, heating, cooling, waste disposal, and internet
Annual DAO LLC Administration and Filing Fees – Recurring fees required to maintain a DAO LLC in compliance with state regulations. These include costs for annual report filings, registered agent services, and administrative upkeep to ensure the entity remains legally active and operational
Annual DAO Accounting Service – Annual expense for accounting services required to properly record financial transactions, prepare reports, and comply with tax laws within the DAO LLC. These services may include bookkeeping, preparation of financial statements, tax calculations and auditing
Homeowners Insurance – Home insurance policy that protects the owner of a property against financial loss in the event of damage or destruction caused by events such as fire, flood, theft, vandalism, and other risks. The policy may also cover the owner’s liability
Annual Gross Rental Income – The total income generated from renting out a property over a year before deducting any expenses, such as maintenance, utilities, or property management fees. It reflects the property's revenue potential
Monthly Gross Rental Income – The total income generated from renting out a property each month before deducting expenses such as maintenance, utilities, or property management fees. It represents the property's monthly revenue potential
Monthly Net Rental Income – The income remaining from a property's monthly rent after deducting expenses such as maintenance, utilities, property management fees, and other operational costs. It represents the actual profit earned each month
Annual Net Rental Income – The total rental income earned from a property over a year after deducting all expenses, including maintenance, utilities, property management fees, taxes, and other operational costs. It represents the property's actual yearly profit
Annual Value Growth – The yearly increase in a property's market value, influenced by factors such as market demand, property improvements, and economic conditions. It reflects the property's appreciation over time
APR – The total return on an investment property over the course of a year, expressed as a percentage. It combines the rental income generated by the property and the increase in the property's value. This metric provides a clear understanding of the overall profitability of an investment, factoring in both income from rents and potential appreciation of the property's value
IRR – In the context of a tokenized rental property, Internal Rate of Return (IRR) considers all rental income distributions, potential increases in property value, and when these cash flows occur to provide a comprehensive measure of the investment’s overall profitability over time