Can you do a rental schedule on a property that you have not appraised? This was a question recently asked in my closed Facebook All-Stars group. Within this private group, we have a couple of hundred appraisers that really enjoy being able to talk with other appraisers. It’s kind of a virtual coffee house where we can all meet up and get advice from our fellow appraisers.
Well, the other day a fairly new appraiser walked into our coffee shop and asked if they could go back and do a rental schedule on a property that they’d already appraised. Several of the more experienced appraisers quickly answered that yes he could and they led him through the process.
However, this brought to mind a similar question that I’m often asked, “Can you do a rental schedule on a property you have not appraised?” The answer is yes you can but there's a caveat. A rental schedule is a variant of the income approach and, thus, you're under USPAP obligations.
If you don't do an appraisal, you’re only doing a rental schedule, the first thing you’ll want to make sure of is that you have all of the information that you need to do it properly. Whether that means that you do a walkthrough or someone sends you the data that you feel is sufficient enough for you to do your job, but make sure that your scope of work matches the assignment. Always remember that you are under USPAP obligation, you still have your appraiser hat on.
For more information on this subject, please listen to The Appraiser Coach Podcast Episode:
Can You Do A Rental Schedule On a Property You Have Not Appraised
