1. Vacant value, occupied value: what are we talking about?
Vacant value is the value of the home sold empty, which the buyer can occupy or let on today's market terms. Occupied value is the value of the same home sold with a sitting tenant, on the terms of the current lease. Both notions are legitimate; what is not legitimate is to mix them up.
The question put to the valuer determines the value to supply. An owner wishing to sell a let property needs the occupied value. An heir who must divide an occupied property may need both. A buyer who intends to live in the home is interested in the vacant value, and in what it would take to obtain vacant possession. We always state in the report which value is adopted and on what assumption.
When the property is occupied, the report sets out both values and the reasoning that links them. This avoids a common confusion: an occupied value is not a "bad" vacant value, it is a different value for a different legal situation.
2. Passing rent and market rent
The first thing to examine is the rent actually paid by the tenant, as shown in the lease and the receipts. It is then compared with the market rent, meaning the rent an equivalent home, vacant and in good order, would achieve today in the same area. Our article on setting market rent explains the method.
Three situations arise. If the passing rent is close to market rent, the occupied value is close to the vacant value. If the passing rent is below market rent, the owner forgoes income, which weighs on the occupied value. If the passing rent is above market rent, the income is an asset, as long as the lease runs. The full method is set out in our article on valuing a let property (rent above or below market).
An old rent is common in homes occupied for many years: it may have stayed unchanged while the market moved. The gap is measured by comparing with recent lettings of equivalent homes; it is not guessed and not expressed by a general percentage.
3. The likely length of occupation
The gap between passing and market rent matters only for as long as it lasts. The longer the occupation is likely to run, the more the difference weighs in the value. The sooner it may end, the closer the occupied value moves to the vacant value.
The valuer therefore examines the lease: start date, agreed term, renewal conditions, rent review clauses, whether there is a written lease, payment history. Residential leases fall under Law 67-12, which we present in our article on Law 67-12 and residential lettings. The conditions under which an owner may recover the home depend on the legal framework and on the content of the lease; that is a question for a lawyer or notary, not for the valuer.
What the valuer does is state an assumption on duration and make it explicit. The valuer does not claim to predict when the tenant will leave. The report says what duration it starts from, why, and how the value changes if the duration changes. The reader can check the reasoning and redo it with another assumption.
4. Who buys an occupied home: the investor's view
A let home appeals to a narrower public than a vacant one. The owner-occupier looking for a place to live is often ruled out: they cannot move in. That leaves investors, who accept the sitting tenant in exchange for immediate income, sometimes at a price below that of a vacant home.
The investor thinks in terms of yield. They look at the current rent, what is left after charges and tax, the risk of non-payment, the likely length of the lease, and what the home would be worth at the end of the occupation. The further the passing rent sits below the market, the more the investor expects a price that compensates for the wait. The steadier the tenant and the more regularly the rent is paid, the more reassured the buyer.
The valuer therefore stands in that buyer's shoes. This is why the occupied value may differ from the vacant value. On the rights of buyer and tenant on a sale, see our article on selling a tenanted property.
5. How the occupied value is built
| Step | Question asked | What the valuer documents |
|---|---|---|
| 1. Vacant value | What is the home worth empty, in good order, on today's market? | Comparable sales, adjustments, apparent condition |
| 2. Market rent | What rent would the vacant home achieve? | Comparable lettings in the area |
| 3. Passing rent | What does the tenant really pay, since when, under what lease? | Lease, receipts, payment history |
| 4. Length of occupation | How long is the gap likely to last? | Explicit assumption, justified by the lease and context |
| 5. Occupied value | What is it worth to an investor taking over the lease? | Passing income over the assumed term, then reversion to vacant value |
This build-up makes visible how much of the value is due to the lease. It also answers a question many owners ask: is it better to sell occupied, or to wait until the home is vacant? The answer depends on the figures of the property itself and cannot be generalised.
6. What about commercial premises?
All this applies to a home. Commercial or professional premises follow other rules: term, renewal, eviction indemnity, leasehold right. For those cases, see our guide to the commercial lease law and our article on valuing a leasehold right.
7. Common mistakes
- Applying a flat discount "because the property is let": the gap depends on the rent, the term and the buyer.
- Mixing vacant and occupied value in one document without saying so.
- Taking the lease rent for the market rent, or the reverse.
- Forgetting the real condition of the home: a long-standing tenant sometimes leaves a property needing refurbishment.
- Neglecting the lease content: term, review, written or not, everything counts.
- Relying on a stated rent without receipts or payment history.
8. What ReaConsult delivers for a tenanted home
Our RICS-certified valuers study the lease and receipts, inspect the home where access is possible, establish the vacant value, estimate market rent, state the duration assumption and reach an occupied value. The report presents both values, the reasoning linking them and the assumptions adopted, documented and verifiable line by line. It binds no one: it informs the decision of the owner, the heir or the buyer. Fees from MAD 3,500 excl. VAT, firm quote within 24 hours, report in 5 to 8 working days. See our property valuation service.
9. FAQ
Is a let home worth less than a vacant one?
Not necessarily. It depends on the gap between passing rent and market rent, the likely length of occupation and the type of buyer. The valuer works out the two values separately, then explains the gap.
Is there a standard discount for an occupied property?
No. No general percentage holds: the gap is measured property by property, from the lease, the rent and comparable sales or lettings.
Which value do I need to sell a let home?
The occupied value, which reflects what an investor is willing to pay when taking over the lease. The vacant value serves as a reference to understand the gap.
Can the valuer say how long the tenant will stay?
No. The valuer states an assumption on duration, explicit and justified by the lease, and shows how the value moves if the duration changes. The conditions for recovering the home are to be validated with a lawyer or notary.
Which documents are needed to value a let home?
The title or ownership certificate, the lease, the latest rent receipts and, if possible, the history of rent reviews. An entry inventory is useful.
How much does the valuation cost and how long does it take?
Fees start at MAD 3,500 excl. VAT for an apartment, with a firm quote within 24 hours. The report is delivered in 5 to 8 working days, or in 48-72 hours express with a surcharge.
A let home to sell, divide or buy? Get the occupied value on paper.
RICS-certified valuers: vacant value, market rent, an explicit duration assumption, occupied value. Quote within 24 hours, report in 5 to 8 working days.
Note: this article sets out a method; it gives no discount or percentage, because these vary with the lease, the rent and the area. The rights of tenant and owner depend on the legal framework and the content of the lease; validating them is for a lawyer or notary. See also our property valuation service.