Rental Value

Definition

Rental value is a measure of damages for deprivation of the use of property.

Purpose

The purpose of rental value is to compensate a property owner for the loss of use or income from their property due to damage, eviction, or other interruptions.

Examples of Use

• In legal disputes, rental value may be used to determine compensation for a tenant wrongfully evicted from a rental property.
• Property owners may claim rental value damages when their property is rendered unusable due to construction defects or other issues.
• Insurance claims often include rental value calculations to cover lost income from damaged rental properties.

Related Terms

• Fair Market Rent: The amount of rent that a property can reasonably command in the open market.
• Loss of Use: The inability to use property due to damage or other issues.
• Damages: Compensation awarded to a party for loss or injury.

Notes

Calculating rental value involves assessing the fair market rent and the duration of the deprivation, ensuring that property owners are fairly compensated for their losses.