Property leasing has grown in popularity in recent years and most professionals would be familiar with the term. However, lease terms and rental values can impact the real estate lifecycle through a number of factors, in particular:
- The state of economy and the real estate market. Rents generally reflect the profitability of the businesses that occupy and/or lease the premises, but they are also heavily dependent on demand and supply, and therefore, indirectly, on the health of the economy;
- The performance of a property investment, as property investors seek to benefit from both the rental income and from the capital growth which they anticipate from their ownership; and
- The valuation of the property itself (especially investment and commercial properties), given that the income approach (which is the main approach to value these types of properties) assesses market value by capitalising the future income obtainable from the property.
This online session is beneficial for auditors, real estate and financial advisors, valuers, estate agents and property investors as they will be guided through the key concepts, principles and terminology related to leases and rental values. While this three-hour session will primarily focus on long-lets for commercial properties, the key concepts also apply to residential properties.
The speaker will also go through the economics of rent and the determinants of rental value. This element will be assisted through an analysis of the rental data available in Malta, together with an explanation of how it can assist market research.
This course also provides participants with an excellent opportunity to learn how to estimate rental value, learn the basics of preparing cash flows for valuations and investment appraisals, understand the contents and terms of a lease, and learn how to review these lease terms.
Learning to judge market value is a fundamental element of property valuation, and this course will provide the right opportunity to harness this valuable skill.
Interested in the topic? The MIA is organising a session on the 27th of September, 2022.