For Duplex Comps Is Grm Based On Contract Or Market Rents

[timd354]

New signed leases from craigslist and our MLS site show $1200.

Where do you get the signed leases on Craigslist? Craiglist is nothing more than the offering or list price for the rents and the actual rents obtained may or may not be equal to that....and if the MLS shows more recent comparable rents, then why wouldn't the appraiser just use those properties as the rental comps?

 

[timd354]

Most often, 1-4 units are rented monthly, so easy for the buyer to raise rents to market or kick out the old tenant and get one that pays market rent.

Maybe that is true in your markets, but it certainly is not true in many markets and in many markets (especially markets with left wing governments) it is not easy to quickly evict a tenant under any circumstance, even if they are a holdover tenant on a month to month lease.

 

[gregb]

Maybe that is true in your markets, but it certainly is not true in many markets and in many markets (especially markets with left wing governments) it is not easy to quickly evict a tenant under any circumstance, even if they are a hold over tenant on a month to month lease.

Interesting slant, favoring property rights of an owner over that of a tenant.

 

[J Grant]

Unlike purchases which see prices influenced by financing, rents have to be paid with "real" money- aka from earnings or investments. In many areas duplexes and small income units, being plainer housing (typically) see them rented by local working people...if the local working tenants' incomes are not rising, where does the increases in rent get paid from? Are the higher rents reported real,/sustainable, or spin from sellers and agents trying to get higher sale prices?

 

[timd354]

Interesting slant, favoring property rights of an owner over that of a tenant.

Tell me what about my statement is not true. In many jurisdictions governed by the left, landlord-tenant laws highly favor tenants and make it very difficult for a landlord to evict a tenant quickly. I am not making a judgment as to whether or not that is good public policy, I am just observing the way things are.

 

[gregb]

Tell me what about my statement is not true

Show me where I state or infer that your statement is not true?

 

[timd354]

Show me where I state or infer that your statement is not true?

Your claim that I am " favoring property rights of an owner over that of a tenant" infers that what I stated is not true.

 

[gregb]

Prior posts stating ownership in rental properties would lead one to conclude that you favor the property rights of an owner over a tenant.

 

[Pittsburgh Pete]

Maybe that is true in your markets, but it certainly is not true in many markets and in many markets (especially markets with left wing governments) it is not easy to quickly evict a tenant under any circumstance, even if they are a holdover tenant on a month to month lease.

But with a right wing government folks are out on the street lickety split????

 

[timd354]

But with a right wing government folks are out on the street lickety split????

In areas governed by the right wing, evictions are typically much quicker and easier than in areas governed by leftists....that is just a fact. I have not expressed any judgments about the relative public policy merits of landlord/tenant laws (and how courts enforce those laws) in right wing versus leftist areas, I was just making an observation about what goes on.