Recruiter's Glossary

Examples: Building Code • SNDA • Opportunistic

GRM

Term from Real Estate industry explained for recruiters

GRM (Gross Rent Multiplier) is a simple tool used in real estate to quickly evaluate property values. It helps people in real estate figure out if a property's price makes sense compared to the rent it brings in. Think of it like a quick calculator that helps determine if the purchase price of a building is reasonable based on how much rent money it can make. While there are other more detailed ways to analyze properties, GRM is popular because it's fast and easy to use, especially when comparing multiple properties or making initial assessments.

Examples in Resumes

Analyzed over 50 multi-family properties using GRM and cap rate methods

Trained junior agents on using Gross Rent Multiplier for quick property evaluations

Successfully identified undervalued properties through GRM analysis

Typical job title: "Real Estate Analysts"

Also try searching for:

Real Estate Agent Property Analyst Investment Analyst Real Estate Investment Specialist Commercial Real Estate Agent Property Acquisition Specialist

Where to Find Real Estate Analysts

Professional Networks

Learning Resources

Example Interview Questions

Senior Level Questions

Q: How do you use GRM alongside other metrics to make investment decisions?

Expected Answer: A senior analyst should explain how GRM works with cap rates, cash-on-cash return, and other financial metrics to create a complete property analysis, providing examples from their experience.

Q: How would you explain market trends using GRM to clients?

Expected Answer: Should demonstrate ability to explain complex market analysis in simple terms, showing how GRM helps identify good investment opportunities and market patterns.

Mid Level Questions

Q: What are the limitations of using GRM for property evaluation?

Expected Answer: Should explain that GRM doesn't consider operating expenses, vacancy rates, or property condition, and why additional analysis methods are needed.

Q: How do you calculate GRM and what is a good ratio in today's market?

Expected Answer: Should explain that GRM is property price divided by annual gross rent, and discuss typical ranges for different property types in various markets.

Junior Level Questions

Q: What is GRM and why is it useful?

Expected Answer: Should explain that GRM is a basic tool for comparing properties based on their price and rental income, useful for quick initial property screenings.

Q: When would you use GRM versus other evaluation methods?

Expected Answer: Should explain that GRM is good for initial property screening and comparing similar properties in the same area, but shouldn't be the only analysis tool used.