Gross Rental Income

Gross rental income is the total rent collected from tenants before any deductions for expenses, taxes, or vacancy, representing maximum potential revenue.

Income TypeInclusion
Base rent paymentsPrimary monthly or annual rent
Rent escalationsScheduled increases during lease term
Renewal incomeNew lease at higher market rate
Short-term premiumHigher rates for vacation rentals
Adjustments to Reach EGIDescription
Vacancy allowanceSubtract expected vacant periods
Collection lossSubtract estimated non-payment
ConcessionsSubtract rent-free periods or discounts
Effective gross incomeRealistic collectible amount

Related Terms

Net Rental IncomeEffective Gross Income (EGI)Gross YieldRental Rate

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