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A proportion of the cost expended on developing a property could be used to determine the rental value of that property; but this is usually only done when there are no comparable properties in the area. Naturally, a property owner would want his returns to measure up to the costs incurred so fixing the rent based on the cost of constructing the property seems like the only reasonable thing to do, for some people. However, there are other factors that have effects on the rental values and if the effects are more negative than positive, the landlord may have to reduce the rent of his property or it may remain unoccupied, in the market, for a long period of time.

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