What is different about a rental property appraisal
As well as comparing recent sales, the appraiser looks at market rents for similar units and at the building’s actual rents. On many files this income analysis sits alongside the sales comparison and helps support the value.
- Inspection of each unit where access allows
- Current rents and lease terms
- Market rent for comparable units
- Operating costs where the lender needs them
What to have ready
Have a list of units with current rents, copies of leases, and a note of any recent upgrades with dates and costs. Tenants should be told when the appraiser is coming so each unit can be seen. Missing access to a unit is a common cause of delay.
Who needs a 2 to 4 unit appraisal
Investors buying or refinancing a small rental building, owners who live in one unit and rent the others, and brokers placing these files with banks, credit unions, alternative lenders or private lenders. Buildings of five units or more are commercial properties and need a different report.
Order a multi-unit appraisal through AppraisalDesk
Choose the number of units when you order, tell us the lender’s requirements, and upload the rent roll and leases. We assign a qualified local appraiser who handles income properties, and everyone on the file sees each step.
- See the price before you place the order
- Your order is assigned to a qualified local appraiser
- Real-time updates by text and email, and online order tracking
- The borrower can pay online by secure link
- Download the report online and message the appraiser
Frequently asked questions
How much does a duplex appraisal cost?
Usually more than a single-family home, because there are more units to inspect and an income analysis to complete. Each property and file is different, and you see the price before you order.
Do rents affect the appraised value of a fourplex?
Yes. For 2 to 4 unit buildings the appraiser considers market rents and the building’s actual income alongside comparable sales.
Can a CRA appraiser appraise a fourplex?
Yes. The Appraisal Institute of Canada’s CRA designation covers residential properties of up to four self-contained units. Larger buildings need an AACI.
Does the appraiser need to see every unit?
Lenders usually expect it. Give tenants notice so each unit can be inspected. If a unit cannot be seen, the appraiser notes it in the report and the lender decides if that is acceptable.