Adjustment for Rental

[Fernando]

Don't be too hard on him counselor. "The Fernando way" just needed a little tune up today.

Thanks for letting me see the light.... rather late.
The reviewer called me out.
At least the reviewer does know his/her stuff.
Seems like the influencing caused me to think negatively.

 

[Tom4value]

I am very stingy with adjustments on a rental grid. In my market, at least, landlords can pretty much charge what they want and tenants would agree to it. I find that unlike with purchasing a property, where the buyer and seller are more attuned to what their money is paying for, a tenant will (within reason) agree to paying with their budget (“Can I afford it? Fine”) rather than what they get, since none of the “amenities” are actually theirs and they know if down the road they found something better, it is easier to move. All of this comes down to not having good enough data to extrapolate a supportable adjustment. Also, as in with your case of trash collection, the vast majority of my markets have trash collection paid for in local taxes so brokers don’t even bother mentioning that trash is included in the rent, making comparisons even tougher to quantify. Bottom line, with my grids, you will generally see adjustments only for bedroom count and condition, the two things that generally affect rent.

 

[Mark K]

It takes a village to get one of Fernando's reports out the door.

It takes a village to raise an idiot. I wonder which village raised Nando?

As far as trash pickup goes, it's insignificant enough to fall into background noise. No adjustment needed.

 

[Fernando]

It takes a village to raise an idiot. I wonder which village raised Nando?

As far as trash pickup goes, it's insignificant enough to fall into background noise. No adjustment needed.

I did adjustment initially correct and later got confused and asked this village for help.
When client wants every dollar increase, no adjustment is insignificant.

 

[Fernando]

No, you were not right. Your subject is superior in market appeal to the rental comparable as it has utilities included which means prospective renters would pay more in rent for it in anticipation of lower utility bills. So, if you wanted to properly reflect that on a grid and all your rental comparables did not include said utilities you would adjust upward to reflect the most probable rent the market would support for your subject.

My head hurts reading your comments above but then I got a "aha" moment and understood what I had to do.
Anyway Mike, thanks for leading me to see the light when I was confused. I get confused sometimes.

 

[Dublin ohio]

I get confused sometimes.

Sometimes?

 

[Dublin ohio]

In 1007 Rental form, if my subject has trash included in the rent and rental comp has tenant paying the trash, would that be a negative adjustment on the grid.
I think it's negative but I'm getting confused since AMC is pushing me to get value higher.

Is your subject's trash pickup a city service?

 

[Fernando]

Is your subject's trash pickup a city service?

No way. Private companies pick up trash. Earlier this year there was a strike and some communities didn't get their trash pickup.
I was afraid some would dump junk on my properties.

 

[Fernando]

Sometimes?

Sometimes. No one's perfect. I have my other strengths.
I'm working on this appraisal and I'm proud of myself in getting information unorthodox and creatively. I doubt other appraisers do what I do.

 

[Dublin ohio]

I doubt other appraisers do what I do.

One could only hope