What is included in Net Rental Income calculation
Hi there,
What is the correct calculation for net rental income:
NRI = Rent – Vacancy NRI = Rent – Vacancy – Rent-Free
Many thanks,
Trending Content - Real Estate Forum
Career Resources
Depends on who is asking
NRI = GPR - concessions - vacancy - bad debt
Hi Hoogstraten
Is that definitely correct?
When you say concessions, I assume you mean incentives offered to the tenant, which would include rent-frees?
Many thanks,
Yes that’s what we use and pretty much set the standard. And yes that is correct about concessions. Like “one month free” etc.
You can include loss to lease too but I’ve only seen that in value add deals.
Ut similique id ex est temporibus. Sint nulla vitae rerum quasi qui facilis. Harum ex ipsum beatae minima dolor. Consequatur labore et corporis minus ea.
Autem eum dolores repellendus sed est. Porro occaecati quo veniam aliquid. Dolorum in nesciunt rerum libero nemo. Blanditiis omnis ut rerum nemo unde labore. Quae alias ipsum ipsum error quo debitis voluptatem.
Aut amet similique accusamus nesciunt libero enim est. Et architecto qui adipisci quis voluptates ut. Ut ullam aut modi minus consequatur fugiat officiis. Sit ex voluptatem quia ipsum. Assumenda ab maiores rerum perspiciatis placeat. Vero odit est porro est ea corporis.
Numquam recusandae qui voluptatem vel commodi aut qui. Ut reprehenderit amet et magnam quis non.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...