Property Valuation
Maryland market rent is defined as:
AThe rent currently being paid under an existing lease
BThe rent a property would command in the open market under typical terms and conditions✓ Correct
CThe maximum allowable rent under Montgomery County rent stabilization
DThe average of all rents in the MLS
Explanation
Market rent is the rental income a property would command in the current competitive market if vacant and available, as opposed to contract rent (actual rent paid under a lease).
People Also Study
Related Maryland Questions
- In a competitive market analysis (CMA), a Maryland real estate agent compares the subject property to:Property Valuation
- A Maryland rental property generates $36,000 net operating income annually. Using a 6% capitalization rate, the indicated value is:Property Valuation
- Under Maryland law, a landlord who accepts rent after a lease expires typically creates:Property Management
- The market value of a Maryland property is best defined as:Property Valuation
- A Maryland property manager who allows a tenant to pay less than the contracted rent without a written amendment to the lease may create:Property Management
- A Maryland investor sells a property for $575,000 after owning it for 5 years and receiving a total of $150,000 in rental income. The original purchase price was $400,000. Total gross profit is:Real Estate Math
- A Maryland tenant who has paid their last month's rent in advance can:Property Management (alternative)
- A Maryland property manager is responsible for a rental property during the landlord's extended absence abroad. The manager's authority is defined by:Property Management (alternative)
Key Terms to Know
Gross Rent Multiplier (GRM)
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Study This Topic
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →