Property Valuation
In Virginia, 'market rent' for appraisal purposes differs from 'contract rent' in that:
AContract rent is always higher
BMarket rent is the competitive rate for the space; contract rent is what the tenant actually pays✓ Correct
CThey are always equal
DMarket rent is set by VREB
Explanation
Market rent is the rent a property would command in the open market. Contract rent is the actual rent in the lease. If a tenant pays below market rent, there is 'excess rent' lost to the landlord.
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