Model for Determining Rental Values of Commercial Properties: Case Study in Boralesgamuwa Urban Council Area

Abstract

The rental value of a property is a function of many factors. To calculate the rental value, identification of those factors is very important. The factors that influence the rental value are different in different areas while there are some common factors. The degree of contribution of those factors is also different from one area to another. In valuing a commercial property, rent is essential component for valuers as applying valuation methods. Assessment of accurate rental value for the subject property is based on collecting the rental value details of the property. To make necessary adjustments valuer should have a thorough understanding regarding the factors affecting rental values within the particular area and the relationship between those factors and rentals. Therefore, this research intends to identify the factors affecting commercial property rental values. With the model developed for showing factors affecting commercial property rental values and their relationships, valuers can determine rental values easily and more accurately. This kind of model also enrich as the scientific nature of the valuation process. This model will also help land lords and tenants when determining rental value of commercial properties. Further the findings of this research will help decision makers and policy makers when taking decisions and formulating policies.