Property Valuation
When analyzing Oklahoma rental properties, what is the difference between economic rent and contract rent?
AThey are the same in Oklahoma
BEconomic (market) rent is what the property should command in the current market; contract rent is what the tenant is currently paying under the lease✓ Correct
CContract rent is always higher than economic rent
DEconomic rent applies only to commercial properties
Explanation
Economic rent (market rent) is the rent a property would command in the current competitive market. Contract rent is the actual rent specified in an existing lease, which may be above or below market rent depending on when the lease was signed.
Related Oklahoma Property Valuation Questions
- The term 'highest and best use' in appraisal means the use that is:
- A 'drive-by' appraisal or exterior-only appraisal in Oklahoma is:
- Which appraisal approach is most commonly used to value single-family residential properties?
- When an Oklahoma appraiser performs a drive-by appraisal (exterior-only inspection), the appraiser's limitations include:
- In the cost approach, accrued depreciation includes which three types?
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- Oklahoma appraisers must be licensed or certified under:
- When appraising a property for insurance purposes in Oklahoma, the relevant value standard is typically:
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