ABSTRACT
This chapter reviews the traditional approaches to the income approach used by valuers to assess market value.
Freehold owners may choose to let their property and accept rent rather than occupy it themselves. The letting may be periodic (e.g. from month to month or from year to year), or on a lease for a term of years. Normally the freeholder will seek to obtain the market rent, namely:
The estimated amount for which a property would 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 where the parties had acted knowledgeably, prudently and without compulsion.
