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CANCELLED: Contract or Effective Rent: Finding the Real Rent

April 12, 2023 @ 8:30 am - 12:30 pm

Cancelled due to low enrollment

Instructor: Gary DeWeese, MAI

Contract or Effective Rent: Finding the Real Rent is a half-day, four-hour synchronous seminar designed for participants who want to examine the difference between contract rent and effective rent and learn how this difference must be addressed in the valuation of real estate. Real estate appraisers and consultants, leasing agents, property managers, accounting professionals, and investors may find the content applicable to their everyday work or be able to incorporate effective rent into their valuation or consulting work.

The seminar uses a combination of lecture, discussion questions, examples, and problems to address, conceptually and with a case study, the situations in which effective rent arises and the reasons that effective rent needs to be determined for valuation and evaluation, such as consulting purposes. The seminar covers the three methods used by market participants to determine effective rent for leases involving landlord concessions and non-market based provisions. The class will discuss how the impact of effective rent is reflected in the valuation approaches. Participants should be familiar with discounted cash flow concepts and general valuation approaches. In-class examples and problems will be demonstrated and solved with the HP-12C calculator. The case study material will be demonstrated in Excel, and a basic working knowledge of Excel is helpful but not required.

 

  • Define effective rent and distinguish between nominal rent and effective rent.
  • Identify how calculating effective rent impacts property value.
  • Recognize how familiarity with effective rent implications helps appraisers consult with landlords and tenants in lease negotiations.
  • Identify how integration of the effective rent measurement impacts all three approaches to value.
  • Evaluate proper methods of calculating effective rent and apply the conclusions in each approach to value.

Pre-Class Assignment:  After you register for this class, please go to your Education and Events page for details on what you must complete BEFORE class begins.

To access your Education and Events page, log on to the Appraisal Institute website at https://ai.appraisalinstitute.org/eweb (click on the three horizontal lines to the left of the AI logo and select “My AI Account” from the drop-down menu).

A Special Note About Registering:

  • Never attended an Appraisal Institute Offering or not yet updated your password / log-in since October 1, 2019 – follow these simple steps before registering.
  • Those seeking credit from states outside of California are strongly encouraged to check directly with their state licensing board(s) to confirm that the specific state(s) will (1) accept synchronous classroom education, (2) accepts education from an out-of-state provider and/or (3) offers reciprocal credit if the offering is approved by the CA BREA.
  • This synchronous program is approved for 20 AI CEC points, 4-hours of State Board of Equalization (SBE) CEC for assessors (CAR #101517) and has been successfully renewed for 4-hours of CA BREA CEC (#15CP754601146).
  • Instruction will be held via Interactive Technology (ZOOM) and is based on the “live” classroom version that falls under the requirements for synchronous education
  • It is the student’s responsibility to have the required equipment – dependable Internet access, computer, webcam and microphone, Excel, agrees that attendance will be monitored and to forward their Photo ID/ Driver’s License to the Chapter Office upon completing your online registration.

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Details

Date:
April 12, 2023
Time:
8:30 am - 12:30 pm
Event Category: