Market Rent Review
Market rent reviews are often required by a landlord who wishes to know how much rent to charge for their property or by a tenant who wishes to know how much rent they should be paying as dictated by the market. Rent reviews are typically requested either at the initial renting stage or at the time of renewals.
When a market rent estimate is required for a property, the appraiser gathers, compares and adjusts comparable rental data. The rents of comparable properties provide a basis for estimating market rent for a subject once they are reduced to the same unit of measurement. Comparable rents may be adjusted just as the transaction prices of comparable properties are adjusted in the sales comparison approach of appraisal.
Highest and Best Use
The highest and best use is the reasonable and probable use that results in the highest present value of a property after considering all legally permissible, physically possible, maximally productive and financially feasible uses.
It is essentially a series of feasibility studies for different use scenarios for a property, both for the land as if vacant and for the property as if improved. This analysis uses the results of market studies, marketability studies and feasibility studies to arrive at a conclusion regarding the highest and best use of the property.
Other advisory services provided by Terra Caribbean include market research studies, and property investment advice.