A Market Rent valuation will provide a professional opinion of rental value for a property
with respect to the prevailing rental market at the date of valuation. As such, the surveyor
will objectively analyse and assess a number of factors which affect the relationship between
occupiers, tenants and landlords in a market in order to come to an opinion of value.
The exact basis and purpose of a valuation will dictate various assumptions and disregards
that a surveyor will take into account when coming to an opinion of value, however, the generally
accepted definition of Market Rent from the Royal Institution of Chartered Surveyors (RICS) and
The International Valuation Standards Council (IVSC), is:
The estimated amount for which an interest in real property should be leased on the valuation
date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length
transaction, after proper marketing and where the parties had each acted knowledgeably, prudently
and without compulsion.
Although the valuation will be based on objective analysis, it is important to recognise that
the methodology behind it is not just a science, but an art, wherein the expertise and intuition
of individual experts will play a part, hence why a Market Rent is a professional opinion of rental value.