This Glossary provides definitions of terms related to property and property investing.
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Term and Definition
Rainwater harvesting

Water harvested, or collected, from rainfall for use in domestic or commercial operations.

Ratchet clause

A clause in a lease which operates when a rent review is being carried out and provides that the rent shall not fall below its previous level. This prevents the rent being decreased when a market or CPI review would otherwise decrease it.

Real rate of return

The amount by which the rate of return exceeded the rate of inflation over an investment period. Real rate of return is Nominal rate of return minus inflation. See also Nominal rate of return.

Recycled material

Material that would otherwise be destined for disposal but is diverted or separated from the waste stream.

Recycled water

Treated water (waste water) which undergoes additional advanced treatment to make it safe for certain uses such as landscape irrigation.

Recycling

A set of processes, including biological, for converting recovered materials that would otherwise be disposed of as waste, into useful materials and or products.

Redemption

Redemption is the return of an investor's equity and involves the cancellation of their units held.

Redevelopment

A property project involving tenant space expansions, and/or building retrofit. A redevelopment could also include complete destruction of the interior space as well as exterior refacing.

Refurbishment

Refurbishment is the upgrading of a building's fabric and services with the aim of enhancing its ability to compete effectively for tenants, improve rental growth, and maximise market value. This may involve the modernisation of services including air conditioning, lifts, electrical load capacity, and some cosmetic work to facades and interiors.

Regional centre

A shopping centre with one full-line department store, a full-line discount department store, one or more supermarkets and 100+ specialty stores. Total GLAR from 30,000 to 50,000 sqm. e.g. Mandurah Forum, WA: 35,000 sqm; Kmart, Big W, Coles, Woolworths and 122 specialities. In some cases a shopping centre with two full discount department stores, without a department store, may be called a ‘regional centre’.

Regulatory/statutory fees

Fees paid to regulatory authorities. These are usually a direct third party cost borne by the fund.

Reinstatement

The term used in leases where the tenant is required at the end of the lease term to remove tenant fixtures, paint and repair the premises and reinstate to their original condition.

Reinstatement works can be either undertaken by the tenant or a cash payment in lieu to the landlord.

Renewable energy

Renewable energy is obtained from sources that can be sustained indefinitely. Examples of renewable energy systems include photovoltaic solar collection, solar thermal turbine generation and wind power.

Rent

A payment made periodically by a lessee to a lessor for the use of premises. See also Base rent, Contract/Passing rent, Economic rent, Effective rent, Face/Headline rent, Market rental value, Gross rent, Ground rent, Net rent, Over rented, Peppercorn rent, Percentage rent/Turnover Rent/Overage/Participation Rent.

Rent review

A periodic review of rent under a lease using a predetermined method. e.g. Increase may be a fixed percentage, may increase by CPI or in accordance with a market rental valuation.

Replacement Cost

A method of appraising property on the basis of the replication of the existing asset.

Restrictive Covenant

A covenant on a title restricting the full use of the land. It may be removed by an Order of the Court, or in some cases by consent of the person named in the covenant as having this power. A common example is a covenant not to erect more than one dwelling on the property.

Reversionary Yield

Generally this is the yield receivable once the rents revert to market levels based on current value/price.

Rise and fall clause

A clause in a contract, usually in building contracts, providing for an adjustment of the contract price upwards or downwards according to movement of prices, wages or other factors specified in the clause.

Running Yield

Generally this is the forecast yield that will be generated by a property on an annual basis in the short-to-medium term based in current value/price.

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