Hypothetical Tenant Law and Legal Definition
Hypothetical tenant refers to a fictional person used for assessing property taxes. It is based on what the person would pay to lease the property. The hypothetical tenant may be able to negotiate a rent less than the open market rent on the basis that rents are likely to drop further. The hypothetical tenant also includes persons who might possibly take the property including the persons actually in occupation, even though s/he happens to be the owner of the property.