16 Valuation · 16.1 Valuation principles and terminology
16.1.5 Rent and outgoings: rack, ground, head and standard rent; gross and net income
Rack rent is the full open-market rent; ground rent is rent for bare land; head rent is what a lessee pays his own landlord; profit (improved) rent is what he keeps; standard rent is the rent fixed by rent-control law; and net income = gross income − outgoings is what is capitalised into value.
- MPSC ATP
- Standard level
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Key terms
- rent
- rack rent
- full rental value
- ground rent
- secured ground rent
- building lease
- head rent
- sub-lease
- profit rent
- improved rent
- standard rent
- Maharashtra Rent Control Act 1999
- contract rent
- economic rent
- under-rented
- over-rented
- gross income
- outgoings
- municipal taxes
- repairs
- insurance
- management and collection
- sinking fund
- vacancies
- services
- net income
What this note covers
- Core factsFoundation
- ExplainedStandard
- DeeperAdvanced
- Mains writingMains writing
- Common trapsFoundation
- Quick revisionFoundation
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