What is "rehab" in real estate terms?

The term "rehab" in real estate refers specifically to refurbishing or renovating a property to enhance its value. This process often involves making significant improvements to the structure or aesthetics of a property, which can include anything from updating interior design and functionality to making necessary repairs or upgrades to the plumbing, electrical systems, or roofing.

The goal of a rehab project is to increase the property’s market appeal and overall value, potentially leading to a higher selling price or increased rental income. Home investors and flippers often engage in rehab work to maximize their return on investment by transforming a property that may have been in disrepair or outdated into a desirable living space.

The other options do not accurately capture the essence of "rehab." Market research pertains to evaluating and understanding market conditions, collecting rent is an operation aspect of property management, and creating marketing materials involves promoting properties rather than improving their physical state. Thus, option B is the most fitting definition of "rehab" in the context of real estate.