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Glossary – P   arrow

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Packaging
This is when several items are sold together as a package. In the hotel business, this can be done by packaging a room with a spa service, etc.

Passive income
Income from rental activity, limited business interests, or other activities in which the investor does not materially participate.

Passive losses
Losses from the ownership of passive investments.

Potential rental income/Proforma
The total amount of rental income for a property if it were 100 percent occupied and rented at competitive market rates.