The Gross Effect: Defining and Stabilizing Income
Presentation Category
04 APPRAISING PROPERTY
General Session Description
This session will provide an hour’s worth of rigorous examination of the definitions and treatments of income within the Income Capitalization Approach, focusing on Direct Capitalization. Understanding how to define income is the first and most vital step in the valuation of real property. We will move beyond simple rent rolls to explore the nuances of Potential Gross Income. We will discuss the impacts of market rent versus contract rent. We will discuss the distinctions and perspectives between fee simple, leased fee and leasehold interest. We will discuss how to identify and categorize “other income” and what is not considered in the calculation of net income within the valuation of real property for property tax purposes. The presentation concludes with strategies for stabilizing income to reflect a typical year of operation, a reliable foundation for the Capitalization Approach.
Audience Expertise
General Interest (Appropriate for all experience level)
Location
Telus 101/102
Start Date
10-16-2026 10:00 AM
End Date
10-16-2026 11:30 AM
The Gross Effect: Defining and Stabilizing Income
Telus 101/102
This session will provide an hour’s worth of rigorous examination of the definitions and treatments of income within the Income Capitalization Approach, focusing on Direct Capitalization. Understanding how to define income is the first and most vital step in the valuation of real property. We will move beyond simple rent rolls to explore the nuances of Potential Gross Income. We will discuss the impacts of market rent versus contract rent. We will discuss the distinctions and perspectives between fee simple, leased fee and leasehold interest. We will discuss how to identify and categorize “other income” and what is not considered in the calculation of net income within the valuation of real property for property tax purposes. The presentation concludes with strategies for stabilizing income to reflect a typical year of operation, a reliable foundation for the Capitalization Approach.