Rent comparability studies, market rent appraisals, and leasing analyses are very important to property owners because they allow them to set market rents for their properties. These services are core to being able to understand the capacity to increase rents and maximize your property’s value. Rental rate studies are equally important to a tenant for financial and use aspects of tenancy. Understanding the market conditions will allow for strategic lease negotiations to ensure a rental rate does not exceed market rates and that any rental rate escalations will allow continued affordability through the lease term.
HUD Section 8 Rent Comparability Study (RCS)
If you own or manage properties that are approved for Section 8, you need a Rent Comparability Study (RCS) to complete the contract renewal process. An RCS aims to determine the market rents for each type of unit in the subject property and demonstrate that current rents are at or below market rents. This is the owner’s chance to establish the market rent for a property for the next five years which can have a significant impact on the market value and revenue of the property.
It is of utmost importance to make sure that the RCS is completed correctly and reflects the full value of the property. Our reports and reviews are routinely accepted by both HUD and State Housing Agencies. All of our RCS are completed per the requirements outlined in Chapter 9 of the Section 8 Renewal Policy Guide and HUD’s Notice H 00-12.
With each appraisal assignment, we apply our extensive knowledge and background of Minnesota multi-family housing markets and utilize quantifiable market-derived adjustments to produce a credible market rent estimate. Our RCSs offer a quick turnaround time, unparalleled rigor, and market-leading sophistication.
Lake State Realty has the expertise and experience to complete an RCS that is delivered on time, fully supported by market data, stands up to review, and reflects the full market value of the property.
Rent Study Review
To ensure accuracy and to promote public trust in RCS, sometimes reviews are necessary. Our rent study reviews receive the same level of due diligence, professionalism, and market research that we apply to our reports. We like to work alongside the appraiser and provide them with the benefit of our years of experience and expertise whether it is selecting appropriate rental comparables or adjustments.
Market Rent Appraisal and Leasing Analysis
Lake State Realty can also determine the market rent of various property types that do not relate to RCS, sometimes called a market rent appraisal. In some instances, it is to help landlords and tenants negotiate lease renewals and escalators in commercial properties, in other cases it is to help owners determine how much rent the market can support. We have provided a comprehensive look at commercial, industrial, and multifamily property leasing rates for a wide variety of clients. We have completed many market rent appraisals for the federal government including establishing fair annual rental rates on various federal properties including federal office buildings, courthouses, border stations, park buildings, specialized office and warehouse spaces, and surface and structured parking. Additionally, as part of our analysis, we can include suggestions for financially feasible upgrades to increase rent rolls. These suggestions can enable the owner to maximize the value of the property.