Property Valuation
An appraiser uses the income approach to value a Virginia apartment complex. 'Economic rent' refers to:
AThe rent actually collected from current tenants
BThe market rent the property could command if available for lease in the open market✓ Correct
CRent set by government housing authorities
DThe rent net of operating expenses
Explanation
Economic rent (market rent) is the rent a property would command in the open market under competitive conditions, regardless of what current tenants actually pay. Appraisers use economic rent to assess market value.
Related Virginia Property Valuation Questions
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