Curable Depreciation

Depreciation or deterioration that can be corrected at a cost less than the value that will be added. See also Incurable Depreciation.

Depreciation or deterioration that can be corrected at a cost less than the value that will be added.
Example: An apartment owner estimates that remodeling the dwelling units would allow an increase in rent of $20 per month. The cost of remodeling is $1,500 per unit. The prevailing Gross Rent Multiplier in the neighborhood is 100. Thus the value added by remodeling is 100 • $20 = $2,000 per unit. Thus, the outmoded appearance of the units is a form of curable depreciation.