Rent Schedule Only

[Metropolis]

I have received an order to provide a Rent Schedule only. What forms and narrative would you provide to ensure compliance with reporting requirements?

 

[Mountain Man]

My residential software has a rent survey form. Commercial? I'd do in a narrative with the lease write ups.

 

[PropertyEconomics]

It is interesting what you ask .... because in doing a rent schedule, I assume there is a subject property, you are doing an appraisal. The value you are reporting is that of market rent.

The development requirements of Standard 1 are applicable and the reporting requirements of Standard 2 are applicable, including a signed certification.

One of the very interesting questions to ask yourself when doing these types of "appraisals" is what property rights are you appraising? I believe I know the answer but it will be interesting to see what you come up with.

So make sure in preparing your "appraisal" in which you provide a "market value opinion of rent" you meet all the requirements of USPAP.

Should prove to be an interesting assignment.

 

[Metropolis]

Oh-it's residential. BUT, I don't think the plain old rent schedule page is going to cover all that is required to be USPAP compliant, i.e. property identification, extraordinary assumptions, etc. At this point, I have my invoice, the 1007 rent schedule, and an addendum with the definition of Market Rent, and my EA's regarding the property itself. I'm not sure which Cert. of LC to use. I have Wintotal software, surely they have some of this covered???

 

[PropertyEconomics]

Oh-it's residential. BUT, I don't think the plain old rent schedule page is going to cover all that is required to be USPAP compliant, i.e. property identification, extraordinary assumptions, etc. At this point, I have my invoice, the 1007 rent schedule, and an addendum with the definition of Market Rent, and my EA's regarding the property itself. I'm not sure which Cert. of LC to use. I have Wintotal software, surely they have some of this covered???

What property rights are you appraising? (They have to be identified.)

The certification is that of an appraisal, the limiting conditions are that of an appraisal, you are determining "market value" and it is an appraisal assignment.

Many dont realize that a "simple rent schedule" is an appraisal unto itself.

 

[Metropolis]

Thanks! No, I do realize that this is an appraisal. I'm more questioning if anyone knows if there is a simple form that is a good addition to cover all of the USPAP requirements or if I should just put it in the addendum as narrative. At this point, I could have done that already and pressed "send", but I have been searching my softwares 200+ forms for something that me be all inclusive.

 

[PropertyEconomics]

Thanks! No, I do realize that this is an appraisal. I'm more questioning if anyone knows if there is a simple form that is a good addition to cover all of the USPAP requirements or if I should just put it in the addendum as narrative. At this point, I could have done that already and pressed "send", but I have been searching my softwares 200+ forms for something that me be all inclusive.

So what property rights have you appraised since it sounds like you are ready to "send"?

 

[Mountain Man]

Do you have a generic certification and SOW in your forms software? I do so little residential now that I'd bang out a rent survey and SOW in an hour using Word.

 

[Metropolis]

"The purpose of this appraisal is to determine the fair market rent as defined below, for the Fee Simple interest of the subject for use in a refinance."

Basically, all of my generic stuff has to do with a SOW that would apply to doing an appraisal for market value. I need to develop one for this...

 

[hastalavista]

I need to develop one for this...

Yes, you do.

My rent survey appraisals are typically 7-10 pages (excluding the certification and exhibits). Most of SR2-2(b) can be communicated within 1-2 pages. My market condition analysis is typically 3-5 pages (not all written; much of what i present are charts derived from MLS data). H&BU and my comparable analysis and reconciliation make up the rest.

My fee is much more than the cost for a rent survey if included in the original order.

Good luck!