Income & Returns

EGI

Effective Gross Income — gross rental income adjusted for vacancy and other income.

Effective Gross Income represents a property's realistic income after accounting for vacancy and credit loss, plus any other income sources.

EGI = (Gross Scheduled Rent × (1 − Vacancy Rate)) + Other Income

Other income includes laundry, parking, storage, and late fees. EGI is the starting point for NOI calculation.

Related Terms

NOI

Net Operating Income — a property's income after operating expenses, before mortgage.

Vacancy Rate

Percentage of time or units a property is unoccupied and not generating rent.