Question

29. an apartment has gross potential income of $15,000 per month. it has a vacancy rate...

29. an apartment has gross potential income of $15,000 per month. it has a vacancy rate of 5%. what is the annual gross operating income?

a. $14,250

b. $171,000

c. $90,000

d. none of the above

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Answer #1

We can calculate the Gross Operating Income by reducing the reasonable vacancy and credit loss factor from total income generated from the property.

so. annual gross operating income = )gross potential income - reasonable vacancy)*12 months

= ($ 15000 - 5%)*12 months

= $ 14250*12

    annual gross operating income = $ 171000

Answer is b. $171,000

…………Hope you are satisfied with the solution provided, kindly support me by rating the answer………....

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