Definition
Gross rental income is total rent collected before deducting expenses—the top line of financial analysis. It's the starting point for all calculations.
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Gross rental income is the starting point for all property financial analysis. It includes rent from all units plus ancillary income (parking, utilities, laundry). It doesn't account for vacancies or expenses. Projecting accurate gross rental income is critical for all valuation methods.
Pro Tip
When projecting gross rental income, account for realistic vacancy rates.
Example
A 5-unit property with $1,200/month rent per unit has $6,000 monthly or $72,000 annual gross rental income