Legal Definitions - annual value

Annual value refers to the net yearly income that can be earned from a particular property. It can also refer to the rental value of a property for one year, minus any expenses or costs.

For example, if a property owner earns $10,000 in rental income per year and has $2,000 in expenses, the annual value of the property would be $8,000.

Another example would be if a landlord charges $1,000 per month in rent for an apartment, the annual value would be $12,000.

Annual value is important for property owners and investors to determine the potential income they can earn from a property and to set appropriate rental rates.