Property Valuation
In a West Virginia appraisal, 'market rent' differs from 'contract rent' in that:
AMarket rent is always higher than contract rent
BMarket rent is the rent a property could command in the current market; contract rent is the rent specified in an existing lease✓ Correct
CContract rent is the legal maximum rent allowed by law
DMarket rent applies only to commercial properties
Explanation
Market rent is what a property could lease for in the current market. Contract rent is the amount specified in an existing lease. If a tenant is paying below-market rent, there is a lease-up or below-market rent issue that an appraiser must address.
Related West Virginia Property Valuation Questions
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