Income Property Information for Appraisal

 

Documentation I’ll Need

If you have income producing properties such as rented or leased commercial or industrial buildings or apartment buildings, I’ll need need specific information from you before I can begin an appraisal:

A well-organized, easy to read set of Income and Expense records for the two years preceding the Effective Year of Value, plus the year-to-date (or end of the most recent quarter) of the Effective Year of Value.

A rent roll as of the Effective Date of Value.  The rent roll should indicate the unit numbers and tenant’s name.

Rental agreements and leases:  If all of your units are rented on a month-to-month basis, and all use the same standard rental form, only one “typical” rental agreement will be needed.  If you have units that are on leases for more than one year, or of you have any agreements or leases in which the rent changes during the term of the agreement, or if any tenants have options-to-renew, we will need copies of those contracts.

 

About My Inspection

For retail and industrial buildings, I will need to see the interiors of all units.  For apartment buildings, I will want to see the interiors of at least 1/4th of the units - unless there is substantial deferred maintenance, mold, infestation or other significant issues - in which case I will need to see the interiors of ALL units.

Larger apartment buildings sometimes present problems when it comes to coordinating inspections of all units.  If the condition of the interiors of the units is average or above, we may chose to inspect only some of the units, preferably at least one of each floorplan.  However, if there is substantial deferred maintenance in any of the units, I will want to see the interiors of all units.

 

Blueprints or other Drawings

If you have either blueprints or accurate drawings available, giving dimensions of each unit, this may help to lower the appraisal fee as it will reduce my time at the property.  I will “spot-check” several dimensions on your drawing and if they are sufficiently accurate, I can rely on them.  Inaccurate or very rough drawings cannot be relied upon as correct unit and building sizes are crucial in valuing income properties. 

In situations where I have to do the measurements, I will provide a computer drawn outline of each unit showing its square footage as well as the total square footage of the structure using exterior structure size.