Market Rental Valuations
Herron Todd White provides Market Rental Valuations expertise across Australia.
Market Rental Valuations
Herron Todd White provides independent Market Rental Valuations backed by local expertise and national consistency.
Frequently Asked Questions
- What is a market rent valuation, and when do you need one?
A market rent valuation assesses the rent a property would achieve on the open market, on the terms of its lease. You may need one for a rent review, a lease renewal or option, a new lease, a related-party lease such as one in an SMSF, or a rent dispute.
- What is the difference between face rent and effective rent?
Face rent is the rent stated in the lease. Effective rent is what the tenant actually pays once incentives are taken into account, such as rent-free periods or a landlord's contribution to fit-out. In markets with high incentives, the gap between the two can be significant.
- Does my fit-out increase the market rent?
Often not. Many leases, and some state retail leases laws, require the valuer to disregard improvements the tenant paid for. The valuer then assesses the rent as if those improvements weren't there. Check your lease's rent review clause, or ask us to review it.
- What happens if the landlord and tenant can't agree on the rent?
Most leases set out a process for resolving it. Typically, the parties jointly appoint a valuer, or an independent body appoints one, such as the Australian Property Institute or, for many retail leases, a state small business commissioner. The determining valuer's decision is usually binding.
- Can you help before a rent review is formally disputed?
Yes. We can provide an independent market rent assessment before or during negotiations, so you know what the evidence supports. This helps you negotiate with confidence and can avoid the cost of a formal determination.
- Do you value residential rents?
Yes. We provide residential rent assessments for purposes such as tax, SMSF related-party leases, and family law matters. Tell us the purpose when you request a quote, so the assessment is prepared on the right basis.