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What are potential gross income, potential gross rental income and effective gross income, and the differences between them?
Potential gross income: \x0d\ is a method used in real estate appraisal. It is the income that can be obtained if the property is fully utilized and there is no vacancy. \x0d\\x0d\ Potential total rental income: \x0d\ The maximum rental income that a house can obtain is called potential total rental income. It is equal to the product of the total rentable area in the property and the most likely rent level. Once this potential total rental income level is determined, the figure remains relatively stable in the monthly report. The factors that can change the potential total rental income are the change of rental level or the change of leasable area. The potential gross rental income does not represent the actual income of the property, but only the rental income that can be obtained if all buildings are rented and all tenants pay the rent in full and on time. \x0d\x0d\ effective gross income: \ x0d \ deduct the loss of vacancy and rent collection from the total potential rent income and add other income to get the effective gross income of the property, that is, effective gross income = total potential rent income-vacancy and rent collection loss-other income. \x0d\ The difference between the three is also obvious.
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