Property Valuation
What is economic rent vs. contract rent in real estate?
AThey are always the same
BEconomic rent is the market rental rate; contract rent is the actual rent in the lease✓ Correct
CEconomic rent applies to commercial; contract rent to residential
DContract rent is always higher
Explanation
Economic (market) rent is what a property would command in a competitive market. Contract rent is the actual amount specified in the lease.
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