How to maximize your market rent appraisal?

Many lenders now require a market rent analysis to ensure that borrowers can support their debt when issuing a mortgage. This can come in the form of a tenancy agreement or a market rent appraisal from an approved appraiser.

Unlike the good old days when a market estimate was a one-page document that stated the rent, a market rent appraisal now falls under the same appraisal guidelines as a full appraisal. That means the rental value must be supported by comparable rental properties. Rental data is found in Adlaw Appraisals’ extensive rental database, in addition, we can use MLS, Craigslist, Kijiji, Facebook Marketplace and any other platform that connects landlords and tenants. Two ways to maximize your rental estimate:

1. Do a site inspection.

With market rents, the appraiser has the option of relying on data found online or doing a full site inspection. Visiting the property provides up-to-date and accurate information on the property which allows them to give a maximum rental value. The cost is +/- $75 more but ensures that no stone is left unturned. If the property is well maintained or has been updated, it is crucial for the appraiser to gather this data firsthand which will result in a fair and well supported rental value in the appraisal report. Without having full knowledge of the unit being appraised, the rent will most likely err on the conservative side.

2. Appraiser should NOT give a range of value

Some appraisers will provide a range of value, of which the lender often relies on the lower end of that range. For example, say a property could be rented for $1,500 / month (Excluding utilities and furniture) on a 1-year lease. The appraiser may provide a range from $1300 – $1700 per month. This will negatively impact the financing as the lender will lend on the lower amount ($1300) and not the true market value of $1500 per month. Make sure you are working with an appraisal firm that will provide an exact market rent value.


Always put your requested rent in the special instructions of Solidifi or NAS, and especially when ordering direct from the appraisal firm. Once a value is uploaded to Solidifi or NAS it is difficult to make any changes. If the appraiser sees that the broker is looking for $1,500 per month or knows there is a lease agreement in place at $1,500 per month, they will be more inclined to support that value, as opposed to giving a value of $1,300 or $1,400 per month.

At Adlaw Appraisals, we are always looking at ways to help mortgage brokers get more bang for their buck when it comes to ordering appraisals for mortgage financing. Next time you need a market rent analysis completed, give us a call/e-mail/order HERE  or find us on Solidifi & NAS.