Fair Market Rent definition: Copy, customize, and use instantly
Introduction
The term "Fair Market Rent" refers to the rental value that a property would lease for in an open and competitive market. It is essential for determining the proper rental rate for a property, ensuring that both landlords and tenants are operating within fair market conditions. This concept is particularly useful in lease agreements, property valuations, and when adjusting rental terms.
Below are various examples of how "Fair Market Rent" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Fair Market Rent" as a general rental agreement term
This definition ties "Fair Market Rent" to the standard rate for rental properties.
"Fair Market Rent" means the rental amount that a property would lease for on the open market between a willing landlord and tenant, taking into account comparable properties in the area.
Definition of "Fair Market Rent" as an annual rent adjustment
This definition connects "Fair Market Rent" to the annual review of rental rates.
"Fair Market Rent" refers to the rental amount determined at the start of each lease year, based on the prevailing market conditions and comparable properties in the area.
Definition of "Fair Market Rent" as a property valuation for lease renewals
This definition links "Fair Market Rent" to the valuation process for renewing leases.
"Fair Market Rent" means the rent determined by comparing the subject property to similar properties that are available for lease in the same geographic market at the time of renewal.
Definition of "Fair Market Rent" as a method for determining lease payments
This definition applies "Fair Market Rent" to lease payment determination.
"Fair Market Rent" refers to the rent level that would be agreed upon by a willing landlord and tenant, based on market rates and the condition and location of the property.
Definition of "Fair Market Rent" as a rent negotiation benchmark
This definition ties "Fair Market Rent" to rent negotiation standards.
"Fair Market Rent" means the typical rental rate for a property, used as a benchmark in negotiating lease terms and rental amounts between landlord and tenant.
Definition of "Fair Market Rent" as a rent adjustment clause
This definition connects "Fair Market Rent" to a rent adjustment clause in a lease.
"Fair Market Rent" refers to the rent adjustment that reflects the market rate for similar properties, as defined in the lease agreement, typically updated at regular intervals.
Definition of "Fair Market Rent" as a tax-related determination
This definition links "Fair Market Rent" to tax and financial assessments.
"Fair Market Rent" means the rental amount assessed for tax purposes, often used to determine a property’s value or the allowable rental income for tax deductions.
Definition of "Fair Market Rent" as a factor in property refinancing
This definition applies "Fair Market Rent" to property refinancing processes.
"Fair Market Rent" refers to the rental rate used when determining the value of a property for refinancing, ensuring the property’s rent reflects current market conditions.
Definition of "Fair Market Rent" as a lease default provision
This definition ties "Fair Market Rent" to a default provision in a lease.
"Fair Market Rent" means the rental amount established in the event of a lease default, as determined by evaluating comparable properties in the same area.
Definition of "Fair Market Rent" as a rent review process
This definition connects "Fair Market Rent" to the rent review process.
"Fair Market Rent" refers to the process of determining the appropriate rental amount at the end of a lease term, based on the current market conditions and comparable rental properties.
Definition of "Fair Market Rent" as a rent for government leases
This definition links "Fair Market Rent" to government leasing agreements.
"Fair Market Rent" means the amount determined for government leases, ensuring that the rental rate reflects the current market value of comparable properties leased to government agencies.
Definition of "Fair Market Rent" as a dispute resolution factor
This definition ties "Fair Market Rent" to dispute resolution in leasing agreements.
"Fair Market Rent" refers to the rental amount determined by an independent third-party expert when landlord and tenant disagree on the fair rent for a property.
Definition of "Fair Market Rent" as a rent cap in lease agreements
This definition applies "Fair Market Rent" to rent cap clauses in leases.
"Fair Market Rent" means the maximum allowable rent increase in a lease, based on the market rates of similar properties in the same location and condition.
Definition of "Fair Market Rent" as a rent determination for lease options
This definition connects "Fair Market Rent" to lease option provisions.
"Fair Market Rent" refers to the rental rate that will apply to a lease extension or renewal, calculated based on comparable properties available for lease at that time.
Definition of "Fair Market Rent" as a rent floor in lease agreements
This definition links "Fair Market Rent" to the minimum rent in lease contracts.
"Fair Market Rent" means the minimum rent determined by the current market value, ensuring that the rent is competitive but not below market standards.
Definition of "Fair Market Rent" as a commercial property rental rate
This definition applies "Fair Market Rent" to commercial leasing contexts.
"Fair Market Rent" refers to the rental value of commercial properties, set based on comparable leases and the supply and demand for commercial spaces in the area.
Definition of "Fair Market Rent" as a residential property leasing rate
This definition connects "Fair Market Rent" to residential rental agreements.
"Fair Market Rent" means the going rate for residential properties, established by comparing rents for similar homes or apartments in the neighborhood.
Definition of "Fair Market Rent" as an incentive rent term
This definition ties "Fair Market Rent" to lease incentives.
"Fair Market Rent" refers to the baseline rental amount before any incentive, discount, or concession, representing the value of the property on the open market.
Definition of "Fair Market Rent" as an adjustment to initial rent
This definition links "Fair Market Rent" to changes in rent during a lease term.
"Fair Market Rent" means the adjusted rent for a property based on current market conditions, typically reviewed and modified at set intervals in the lease term.
Definition of "Fair Market Rent" as a rent review for long-term leases
This definition applies "Fair Market Rent" to long-term lease agreements.
"Fair Market Rent" refers to the rental amount reviewed and adjusted regularly during the term of a long-term lease, based on changing market conditions.
Definition of "Fair Market Rent" as a factor in lease termination clauses
This definition connects "Fair Market Rent" to early lease termination.
"Fair Market Rent" means the rate used to calculate the termination fee if a tenant or landlord wishes to end the lease early, based on prevailing market rental rates for similar properties.
Definition of "Fair Market Rent" as a standard for lease negotiations
This definition ties "Fair Market Rent" to lease negotiation guidelines.
"Fair Market Rent" refers to the market value for a property, often used as a baseline during lease negotiations to ensure a fair and equitable agreement between landlord and tenant.
Definition of "Fair Market Rent" as a rental term in lease buyout scenarios
This definition links "Fair Market Rent" to buyout arrangements in lease contracts.
"Fair Market Rent" means the rent calculated when a tenant seeks to buy out the remaining term of the lease, ensuring that the buyout price reflects the current market value of the leased property.
Definition of "Fair Market Rent" as a rent comparison tool
This definition ties "Fair Market Rent" to a comparison tool for rental rates.
"Fair Market Rent" refers to the rent of a property determined by comparing it with the rents of similar properties in the same location, considering factors like property size, amenities, and condition.
Definition of "Fair Market Rent" as a leasing cost for retail spaces
This definition links "Fair Market Rent" to retail property leases.
"Fair Market Rent" means the rental amount for retail spaces, set by comparing rents of similar retail properties in the local area, reflecting both the commercial nature of the lease and the property's market value.
Definition of "Fair Market Rent" as an economic indicator
This definition applies "Fair Market Rent" to economic assessments.
"Fair Market Rent" refers to a benchmark rental value used to gauge the overall economic health of a real estate market, indicating supply and demand dynamics for properties.
Definition of "Fair Market Rent" as a lease clause for subletting
This definition ties "Fair Market Rent" to sublet arrangements.
"Fair Market Rent" means the amount a tenant is entitled to charge in rent if subletting the leased property, based on the current market rates for similar properties in the area.
Definition of "Fair Market Rent" as a base rent for graduated leases
This definition links "Fair Market Rent" to graduated rent structures.
"Fair Market Rent" refers to the initial rental rate in a graduated lease agreement, often based on current market conditions, with predetermined increases at regular intervals over the lease term.
Definition of "Fair Market Rent" as a rental price for special use properties
This definition applies "Fair Market Rent" to properties with specific purposes.
"Fair Market Rent" refers to the market value rent for special use properties (e.g., warehouses, clinics, or factories), calculated based on the rents for similar properties used for the same purposes.
Definition of "Fair Market Rent" as a calculation for rent escalations
This definition connects "Fair Market Rent" to rent escalation clauses.
"Fair Market Rent" means the rent level used to calculate escalation adjustments in long-term leases, often tied to inflation or changes in the rental market.
Definition of "Fair Market Rent" as a starting point for lease negotiations
This definition ties "Fair Market Rent" to initial lease discussions.
"Fair Market Rent" refers to the starting rental amount discussed in initial lease negotiations, used as a point of reference for determining fair and competitive lease terms.
Definition of "Fair Market Rent" as a formula for determining rent in lease renewals
This definition links "Fair Market Rent" to lease renewal processes.
"Fair Market Rent" means the rent determined by applying a formula to the prevailing rental rates in the local market, used to establish terms for lease renewal.
Definition of "Fair Market Rent" as a rent reset provision
This definition applies "Fair Market Rent" to rent reset clauses in leases.
"Fair Market Rent" refers to the rent amount calculated through a formal process when a lease contains a reset clause, typically adjusted at set intervals based on current market conditions.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.