Income after deducting loss of rents due to vacancy and nonpayment of rents,as well as any concessions,is referred to as:

Question

Quizplus · Accepted Answer

Effective gross income takes into account the loss of revenue due to vacancy, nonpayment of rent, and any concessions given to tenants. This gives a more accurate picture of the property's income potential than potential gross income, which only considers the maximum amount of rent that could be collected. Net operating income and before-tax cash flow are calculated using different metrics, such as deducting operating expenses and debt service, respectively.

Income After Deducting Loss of Rents Due to Vacancy and Nonpayment