Determination of fair rental value of higher learning institution (HLI) properties : a case study of Universiti Teknologi Malaysia

Abstract

Higher learning institutions (HLI) in Malaysia have been encouraged to undertake proactive actions to generate their income through multiple resources and activities. As the number of university in Malaysia has been substantially increased, our local public universities have ˜come of great and they should strategize the relevant activities in order to increase their funds. Adequate tangible assets such as lands, hostels, seminar rooms, lecture rooms etc. might be worthwhile to be considered as part of opportunities to generate the income. However, the rentals for most of HLI properties were relatively low, which not reflect the open market rental value. Therefore, the determination of fair rental value is prerequisite to ensure the rental received by HLI is the rental that should be paid in the open market. The main factors affecting rental value of HLI properties including location, type of building, local market trend and demand, capacity and facilities provided.