potential gross income


Also found in: Acronyms.

potential gross income

The maximum rental income possible from a property without vacancy or credit losses.

References in periodicals archive ?
One of Regency West's construction lenders provided estimates of potential gross income and expenses to the City for use in the 2012 valuation.
Potential gross income $60,000/month or $720,000/year Less: Vacancy allowance (say 5%) $36,000 Effective gross income (EGI) $684,000 Less: Expenses Management (say 5%) $34,200 Real estate taxes $80,000 Insurance (estimated at $300 per unit) $15,000 Repairs and Maintenance (estimated at $750 per unit) $37,500 Utilities $120,000 Misc.
The license accomodates 48 children at a time with a potential gross income of $250,000.
Her annual salary is $37,000, which brings the couple's potential gross income to $112,000.
At Everton Brow there was enough room for up to 600 people, generating a potential gross income of up to pounds 3m a year.
Potential gross income is a tremendous analytical tool available almost exclusively to the rental real estate industry.
That's a potential gross income of $250 from each nest per year.
It is a simple ratio between unadjusted sale price and gross income that can be calculated using total potential gross income or effective gross income.
He combined the rents from these categories into a single income stream and applied a single vacancy rate to determine potential gross income. JMR's appraiser used actual expenses from the property to determine net operating income and applied a single capitalization rate to convert his opinion of net operating income into an opinion of true market value.
Data Analysis Revenue Gross rent revenue $2,050,000 Add: NNN reimbursement $612,000 Potential gross income $2,662,000 Less Vacancy and credit loss $266,200 Effective gross income $2,395,800 Less Operating Expenses % of EGI Property tax $335,000 14.0% Insurance $17,000 0.7% C.A.M.
Vacancy and collection loss is estimated at 8% and leasing commissions are estimated at 6% of potential gross income in years 10 and 20.
It is instead a rate that is calculated based on different assumptions regarding potential gross income (PGI), vacancy, and expenses.

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