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The surveyed data from property managers indicated a range in monthly rental rate impacts from $0/month to $100/month based on the proposed driveway changes. The local property manager opined that there would be no observable impacts to the achievable rental rate of the subject property; however, did suggest the existing tenant would likely bear the increased maintenance costs in this situation. The remaining property managers indicated that there would be recognizable damages to the achievable rental rate of the subject property due to the increased driveway length, suggesting rent losses of $50/month and $100/month, respectively. Although the local property manager indicated no damages to the achievable rental rate of the subject, the indications that the existing tenant may experience increased costs, could translate to a rental concession by the landlord to offset the tenant's increased costs to maintain tenant satisfaction and avoiding tenant turnover. Therefore, given a range of $0/month to $100/month, the appraiser has reconciled at the average/median rate of $50/month as a reasonable estimate of rent reduction caused by the proposed increase in driveway length. The monthly rent reduction must be extended to a total damage amount. This will be accomplished through the use of a gross rent multiplier (GRM). A GRM is a common valuation technique utilized in the single family rental market. The GRM relates the gross rent of a rental property to an overall value estimate based on the income approach. Gross rent multipliers are obtained from the sales of rental properties in the market. The GRM is calculated by dividing the sale price of the rental property by the gross annual rental rate of the property at the time of sale. This effectively results in a rent multiplier that is utilized to estimate the market value of a rental property based on its gross annual rent. The appraiser has researched the local Elk River market area for GRM data. Due to the limitations of the MLS system, sales of rental properties were extremely limited, which was confirmed by an interview with a local real estate agent/property manager. As an alternative method, the MLS was utilized to research rental rate data from the Elk River market, and a number of closed rentals were located. These closed rentals were further researched to determine if the same property recently sold. A number of these rental comparables were also sold within a reasonable time frame of the closed rental listing. The combination of the rental rate and sale price were utilized to estimate a GRM for the subject property from the market. The data from the market is as follows. Comparable Gross Rent Multiplier Data Comp # Address City Rental Date Rental Rate Sale Date Sale Price Net GRM 1 19419 Auburn Street NW Elk River 12/5/2013 $1,550/mo 7/11/2013 $145,000 7.80 2 230 8th Street NW Elk River 4/19/2017 $1,695/mo 4/15/2016 $203,000 9.98 3 18312 Wilson Circle NW Elk River 12/1/2019 $1,850/mo 10/28/2019 $318,752 14.36 4 19309 Upland Street NW Elk River 1/27/2014 $1,650/mo 7/11/2013 $183,500 9.27 5 18309 Tyler Street NW Elk River 4/10/2014 $1,695/mo 11/22/2013 $209,000 10.28 6 19393 Upland Street NW Elk River 2/26/2014 $1,875/mo 10/22/2013 $199,500 8.87 7 1 9527 Parrish Avenue NE Otsego 9/26/2019 $1,960/mo 9/11/2018 $252,000 10.71 8 7347 Mackenzie Ave. NE Otsego 2/1/2017 $2,095/mo 9/6/2016 $300,000 11.93 9 7347 Mackenzie Ave. NE Otsego 8/15/2017 $2,395/mo 9/6/2016 $300,000 10.44 10 14744 76th Street NE Otsego 5/1/2017 $2,400/mo 5/1/2017 Active $336,500* Adj.I% 11.68 11 14787 77th Street NE Otsego 10/20/2017 $2,500/mo 10/20/2017 Active $346,400* Ad'.I% 11.55 12 1 8426 164th Circle NW I Ramsey 1/6/2014 1 $1,500/mo 8/29/2013 $145,000 8.06 *List price less 1 % list/sale ratio S.P. 7102-135RW C.S. 7102 (10=3) 902 Parcel 7102-902-229C Page 46