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Debt Service

The total of principal and interest payments owed on a loan over a period, usually a year. It is the mortgage cost that net operating income must cover for a property to break even.

At a dining table, two owners look at a loan folder, a calculator and an envelope
  1. Loan payments due each year
  2. Principal plus interest
  3. Paid from rental income

Where it matters

Look up the term in your agreement, report or local rule. Save the source and date so you can check the wording later.

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This page is general education. The current law, program rules, and specific housing records determine how a rental home is treated. Rentari provides software and written guides, not legal advice or licensed property management.

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