The Profits Method

This method concerns certain properties with specific characteristics or properties such as: hotels, cinemas, hospitals, clinics.

It is also frequently used for commercial and leisure real estate.

These methods are in fact derivatives of methods by direct comparison or by income.

They are based on a rental value based on a percentage of existing or potential sales or gross profit, of the activity carried out in the premises.

The notion of rent-to-revenue ratios is based on averages. The assessor must be able to analyse the financial possibilities of the future tenant.