Maybe it’s different for rentals but you’d think the banks would also want accurate data on the properties they’re mortgaging…and cities for tax revenue…so strange!

For big commercial rental properties they probably don’t care because it doesn’t really push the property value.

I don’t think it really changes the property value because those interior walls are usually cosmetic and not load bearing. If the bank has to foreclose, the next buyer will be well aware they can strip those walls out for nothing relative to the cost of buying the building.

I’m doubtful it pushes the tax revenue for the same reason, everyone is already evaluating based on what it could be.

Smaller units are probably just not worth the effort to manage. It’s a lot of over head to start auditing old duplexes where the owner has a property or two and isn’t a giant company with a whole compliance department.

Why? Banks and cities only care about the price. They also want price to be under and over estimated respectively, neither would want the accurate price, even less so the accurate area.