There are various terms used to define rental property income – operating income, gross revenue, cash flow, and taxable income – to mention a few. But what are these terms and what do they mean for a rental real estate investment? We will define these terms and try to explain how they can influence your investment.
Gross Revenue
Gross Revenue is the total rental income that can be collected by renting the property for the full 12 months of the year. If the monthly rent is $1,000 then the gross revenue would be $12,000.
Other terms often used to refer to this number include – Gross Potential Income and Gross Potential Revenue.
But in reality a tenant might vacate the property during the year and you might not be able to collect the full $12,000 in rent. As you can see gross revenue only serves a good conversation in a tea party, but it does not represent your realized revenue. Read the complete article on Prospektr.ai website.
