Gross Operating Income

From Investment Wiki

The Gross Operating Income is income collected from the operation of a property after accounting for vacancy and credit losses, but before deductions for operating expenses.

The current property produces an annual incme of $24,000, an annual vacancy amount of $1200 and annual rate abatement of $0. Subtracting the vacancy and rent abatement from the annual income gives us a Gross Operating Income of $22,800.

GROSS SCHEDULED INCOME – Turnover Vacancy – Rent Abatement

It is important to remember that the Gross Scheduled Income is what a property could produce in a perfect world, whereas the Gross Operating Income is more likely what the property will produce. The Gross Operating Income is often called the Gross Effective Income or Effective Gross Revenue. A general definition is to take the Gross Scheduled Income and subtract all vacancies and credits.