asked 82.5k views
0 votes
Income after deducting vacancy, collection losses and adding in income from other sources that is available to pay expenses is referred to as:

asked
User Kohloth
by
7.3k points

1 Answer

1 vote

Answer: Effective gross income

Step-by-step explanation:

The income after vacancy, collection losses has been deducted and adding income from other sources that is available is added to pay expenses ia called the effective gross income.

Effective gross income can be calculated when the potential gross rental income is added with income and then the vacancy and the credit costs of a rental property is subtracted.

The effective gross income is important as it helps in determining the rental property value and also the true positive cash flow that can be produced.

answered
User Sampat Badhe
by
7.8k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.