Imputed Rent

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Economic Rent is imputed when the Physical Sources are User Owned.

When a house is Owner Occupied, the landlord-tenant relationship is short-circuited.

If two people, A and B, own property: If A lives in B's property, and B lives in A's, two financial transactions take place - each pays rent to the other. But if A and B are both owner occupiers, no money changes hands, even though the same economic relationships exists; there are still two owners and two occupiers, but the transactions between them no longer go through the market. The amount that would have changed hands had the owner and occupier been different persons is called the imputed rent.


modified from http://Wikipedia.org/wiki/Imputed_rent