Excess rent is a term commonly understood by real estate appraisers to refer to contract rent that exceeds market rent at the date of an appraisal. This portion of the income stream generated by leased property is often mischaracterized, however, by those who fail to identify it as an intangible asset. Through logical application of long-accepted definitions of relevant terms, this article shows that the present value of excess rent is intangible, and it should be identified when included in the property rights being valued by appraisers.
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