Single Family Comparable Rent Schedule

[mark a. gonzalez]

I performed an appraisal for a purchase of a home. The lender came back with a condition that wanted me to provide a Single Family Comparable Rent Schedule for the house that the buyer was going to be moving out of and renting. I have never been asked to do this for a property that I have not appraised. I was a little confused about how to do this. I was thinking about providing the form seperate from the appraisal and adding an addendum explaining that the appraiser had not inspected the property. Has anyone else been asked to do this before and if so am I doing it correctly.

 

[ccooper]

In 15 years I've never been asked to do a rent sched on some property I've never seen. Tell them it won't be a problem. You'd be happy to include a rent sched on the new appraisal of the new subject assignment.

 

[Mikyl]

I have been asked to do this before. I tell them that it is a new assignment and that I will have to inspect the subject property. I know it sounds wierd, but they are just wanting to know if the rents in the area will cover the old mortgage payments. I just want to inspect the subject so that I can find good comparable SFR properties to match too it.

Mike Johnson

 

[Zero]

Completely different assignment.

I would say that either they order a full inspection appraisal with rent survey and pay for it.....or you just send them all MLS rented properties for the last 6months to a year.

 

[Mike Boyd]

Many times. Usually, I will require that I at least walk through the subject if I can get sufficient info from a listing, an appraisal or public records. Otherwise, I will have to measure it as well as do a walk through.

The rental analysis I charge $125 for. If I have to measure and walk through it would be a minimum of $100 more. It is a separate assignment and should not be part of the other appraisal.

 

[JSmith43]

I performed an appraisal for a purchase of a home. The lender came back with a condition that wanted me to provide a Single Family Comparable Rent Schedule for the house that the buyer was going to be moving out of and renting. I have never been asked to do this for a property that I have not appraised. I was a little confused about how to do this. I was thinking about providing the form seperate from the appraisal and adding an addendum explaining that the appraiser had not inspected the property. Has anyone else been asked to do this before and if so am I doing it correctly.

Treat this as a separate assignment. You may have to explain that to your client. Is there adequate information available on this new subject property from adequately credible sources such as past MLS, assessor data or possibly from a prior appraisal (ask the LO to ask the guy if there is a prior appraisal.

If there is adequate data, suggest a scope of work and fee for this new comp rent assignment. I believe the SOW would not have to require an interior inspection, if adequate data were available on the property to be rented. I would spell out EA on interior condition and anything else relevant to prospective renters, such as accuracy of the third party data sources.

Open up your USPAP and verify you have addressed minimum steps of development and reporting. The purpose is assumed to be for mortgage UW purposes estimating a reasonable range of gross rent for the property.

Keep this as a separate file, but I would reference the other file and how this assignment was spawned.

If I missed something, chances are, someone will chime in and correct me

It just sounds tough. Next time, it will be a breeze.

 

[Judy Whitehead (Florida)]

Well, believe it or not, I was asked to do it and did do it - so don't hold it against me! I used the comparable rent schedule form and attached it to the subject file and completed a lengthy narrative addendum with as many CYA's as I could think of. Even getting information on rental homes is difficult in this area (although MLS now has a rental section). I simply did a quick interior inspection and used the county records for statistical purposes, even though I did an onsite verification of the county records versus the personal inspection.

There is really no reason to do a complete appraisal, as that is not what is being asked. The scope of work is to determine market rent - not market value.

 

[JSmith43]

Wow! Look at all the great replies as I was dorking around writing my post above!

 

[PropertyEconomics]

There is no appraisal here. Its simply anohter assignment to do a rent analysis. I dont think Id do it without inspection, but thats a business decision you do. One assignment has nothing to do with the other as far as you are concerned.
Its a chance to do a consulting assignment with your client on a different property. As you will be providing rental rates instead of value I dont think USPAP applies for an appraisal, however, as an appraiser you must comply with USPAP regarding a consultation assignment. Congrats on getting another assignment.

 

[mark a. gonzalez]

WOW, thank you for all of your great replies that really helps.