Rent Roll Analyzer

Gross Potential Rent is the theoretical maximum — Total Units times Average Rent per Unit times 12 — assuming every unit is occupied and paying full rent all year. Effective Gross Income is the realistic figure after subtracting Vacancy Loss and Concessions Loss and adding back Other Monthly Income; it's the number lenders, appraisers, and underwriters actually use for NOI and valuation, since Gross Potential Rent overstates what a property truly collects.

Vacancy Rate is calculated as Vacant Units divided by Total Units, so the same fixed number of vacant units becomes a smaller percentage of a larger total unit count. This is a purely mechanical effect of the ratio, not an indication that leasing performance actually improved — always compare vacancy rates alongside the raw vacant unit count, especially when sizing up properties of very different scales.

No. Vacancy Rate and Occupancy Rate depend only on Total Units and Vacant Units — Other Monthly Income (parking, laundry, storage, and similar ancillary revenue) has no effect on either percentage. It only flows into the dollar-denominated Effective Gross Income and Monthly EGI figures, where it's added on top of net rental income.

Concessions Loss represents discounts and promotional offers — like a free month's rent to attract a new tenant, or a reduced rate to retain a renewing one — applied as a percentage of Gross Potential Rent, independent of whether the unit is currently occupied or vacant. A fully leased property can still carry meaningful concessions loss if management used rent discounts as a leasing or retention tool during the period.

Effective Gross Income (or its monthly form, Monthly EGI) is the realistic revenue figure to use as the starting point for calculating Net Operating Income — subtract operating expenses from it, not from Gross Potential Rent, which overstates actual collections. It's also the income figure lenders typically expect to see in underwriting submissions for a rent roll analysis.