Rent Schedule Only

[valuequestor]

I'm very happy I decided to check out this thread. I've only completed "stand alone" rental analysis for non-litigation private clients and as a favor to a few lenders pre-AMC days. Thanks Metropolisfor bringing it up....and to Denis, CANative, David, DWiley, Glenn and RSW.....Thanks for sharing guys!

 

[BarrySW1963]

Also remember to cite the source for the definition

Can some of y'all offer up the definition of Market Rent you use, and the source for the definition?

 

[Last minute lenny]

Just a quick question. If the husband was/is living there for the past year, are you being asked for current or a retrospective rent from one year ago? Maybe the market rent hasnt changed, maybe your client isnt asking for this or it isnt relvant, just curious. Great responses and very informative thread

 

[DWiley]

Can some of y'all offer up the definition of Market Rent you use, and the source for the definition?

"The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement, including permitted uses, use restrictions, expense obligations, terms, concessions, renewal and purchase options, and tenant improvements." Dictionary of Real Estate Appraisal, 5th Edition

 

[hastalavista]

Just a quick question. If the husband was/is living there for the past year, are you being asked for current or a retrospective rent from one year ago? Maybe the market rent hasnt changed, maybe your client isnt asking for this or it isnt relvant, just curious. Great responses and very informative thread

That is a good question and one that needs to get cleared up by the client.

In a case I had that was going to mediation, the rental period was about a year. Typical residential leases in my market are one-year. The other side had concluded a market rent at the beginning of the period and at the end of the period, and their attorney was arguing that the rent due should be the average of the two.
I told my side that IMO, the market would consider the market rate as-of the date of occupancy and the rate would remain steady over the course of the year (the typical lease-period). I'll give them the beginning and end of the period if they want, but it seems to me that the amount of rental income to be evaluated should be consistent with what the market would expect given the period of occupancy (one-year occupancy, one year's rent based on the market rent as-of the beginning of the lease, not averaged based on what may be obtained at the end of the lease). I also said that was a legal argument and not an appraisal argument, so I'll provide what she wants.
She made the argument and won.

Moral of the story: Ask the client but don't be afraid to offer your appraisal insight if you think it is meaningful and/or helpful.