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,
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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.
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