What is 'rental property appraisal'?

Rental property appraisal refers to the process of evaluating a property's fair market value. This assessment is crucial for various reasons, such as determining the price at which to list the property for sale or rent, establishing a property's value for refinancing, or ensuring that rents are set appropriately in accordance with market conditions. The appraisal typically takes into account a variety of factors, including the property’s location, size, condition, and comparable sales or rental prices in the area. This process helps property managers and owners make informed financial decisions regarding their investments.