Single Family Comparable Rent Schedule

[Howard Klahr]

Is possible that the the borrower may have inflated the rents for the subject? Were you able to ask the renters what they were paying?

So a copy of a lease would be outside the scope of work on a rented residence?

 

[PropertyEconomics]

After carefully reading this thread, and with all due respect to my friend from Santa Fe, I wonder if this is an assignment you should continue with. The difficulty in finding data, the lack of understanding about how to do the analysis, was well as the refresher needed to calculate GRMs leaves me a bit uneasy here.
There are lots of ways to analize this problem, and if youve not done any of them in a while, and dont have the contacts to get the data .... I think it best to simply pass on this assignment.
It could very well be in both your best interest and that of your client. Sorry to say.

 

[Green Hornet]

So a copy of a lease would be outside the scope of work on a rented residence?

Howard,

Your assumption, not mine. Why don't you direct your post to the OP? I think that he was the one looking for the answer.

I think it would be a great idea to get the lease, go for it. I would love to have one for every SF rental. It is amazing how many times that one does not exist, or cannot be located, etc.

However, what they are asking for in the OP is a single family rent schedule. My point was that the subject's actual rent should not drive the market rent schedule. The two should be reconciled, but not dependent on each other. I also got the sense that he was trying to make the market rents match the stated rents for the subject and that he could not do so.

You are correct in the sense that without the lease, it is difficult to determine the weight one should give to the current stated rents. It is one more piece of the puzzle.

 

[Appraisal Santa Fe]

IF reliable data are so very scarce to impugn the reliability of what you are doing, I take it that the request for the rent schedule is based merely on the fact that the borrower is using the property as a rental unit...yes? If such is the case, be certain to include comment that the rent schedule is provided to the client based solely on their request for same and that data available for your development of market rent is extremely limited.

And...the client is not also asking you to communicate the Income Approach...or, are they so asking?

No, income approach was not specifically asked for. Since the unit is rented I thought I'd include it but maybe I'll leave it.

 

[Appraisal Santa Fe]

Is possible that the the borrower may have inflated the rents for the subject? Were you able to ask the renters what they were paying?

Remember, you are trying to determine market rents, not support the rent that the owner provided.

Thanks.

I have no reason to think the owner is lying or exaggerating the rent. I believe my problem really boils down to a lack of info in the rental market.

 

[Appraisal Santa Fe]

Does Santa Fe MLS have a Residential Rental section? I often run those here in Albuquerque to find rentals as well as contacts to talk to about rentals. Just a thought.

Santa Fe MLS is particularly bad with data. I wish it did include rental data.
I've heard Albuquerque MLS is much better.

 

[Appraisal Santa Fe]

After carefully reading this thread, and with all due respect to my friend from Santa Fe, I wonder if this is an assignment you should continue with. The difficulty in finding data, the lack of understanding about how to do the analysis, was well as the refresher needed to calculate GRMs leaves me a bit uneasy here.
There are lots of ways to analize this problem, and if youve not done any of them in a while, and dont have the contacts to get the data .... I think it best to simply pass on this assignment.
It could very well be in both your best interest and that of your client. Sorry to say.

No worries, In retrospect, I should have declined the job. It was not until I got deeper into the rental aspect of the report that I ran into difficulty. As stated before, it's really the lack of good rental data that's causing me trouble.

If I have difficulty with items in a report or have any questions, I usually can find info from fellow appraisers or this wonderful forum. I believe when all is said and done the report will be a good one. I'm doing due diligence here to find information and some outside expertise to complete the report.

 

[Mike Boyd]

It is my experience that the biggest factor in rent for SFR is bedroom counts all other things being mostly comparable.

I agree with Tim. This is the only time I make adjustments for room count.