Property Valuation (alternative)
The 'economic rent' of a property exceeds the 'contract rent' when:
AThe property is located in a low-demand area
BThe current lease was signed when rents were lower, and market rents have since increased✓ Correct
CThe tenant is on a month-to-month lease
DThe property is owner-occupied
Explanation
When market (economic) rents have risen since the lease was signed, the current market rent exceeds what the tenant is actually paying (contract rent), creating 'below market' or 'loss' rent.
Related Maryland Property Valuation (alternative) Questions
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