Property Valuation
Which of the following most accurately describes 'market rent'?
AThe rent a tenant is currently paying under their lease
BThe rent a property would command in the open market under competitive conditions✓ Correct
CThe average rent in a metropolitan area
DThe maximum rent allowed under rent control
Explanation
Market rent is the rent a property would command in the open market between a willing landlord and willing tenant under fair conditions. It may differ from contract rent (what is actually being paid under an existing lease).
Related Arkansas Property Valuation Questions
- In the cost approach, land is always valued separately using:
- The cost approach to value is MOST appropriate for appraising:
- An appraiser makes a positive adjustment to a comparable sale when the comparable:
- The sales comparison approach to value is most appropriate for:
- External obsolescence (economic obsolescence) is caused by:
- External (economic) obsolescence differs from other forms of depreciation because it is:
- Functional obsolescence in a property is caused by:
- Which appraisal approach is most commonly used for appraising special-purpose properties such as churches or schools?
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