Calculating Effective Rental Income (ERI) 1. Annual data for a 6-unit office building: Tenant ABC Accountants Rolling Boxes Crafty Ideals Financial Bird Feeders Appraisals For Us U2R Vacuums Total Area 1,000 SF 1,200 SF 900 SF 3,000 SF 5,000 SF 2,000 SF Market Rents $10.00 $11.00 $12.00 $ 9.50 $ 9.25 $ 9.75 Vacancy and credit losses are currently 6% of the potential rental income for similar-type properties in the market. What is the potential rental income (PRI) for this property? b. Calculate the estimated vacancy and credit loss for this property? What is the effective rental income (ERI) for this property for the year? a. c. Refer to the Arkansas Apartments Annual Operating Statement Data (APOD) for (located on Blackboard) to answer the following questions: 2. What is the potential rental income (PRI) for last year's operation? 3. What was the vacancy rate percentage for last year's operation? 4. What was the gross operating income (GOT) for last year's operation? 5. What are the total operating expenses for Arkansas Apartments? 6. What was the net operating income (NOI) for last year's operation? 7. What percent of the gross operating income (GOI) was used for operating expenses for last year's operation (round to the nearest whole percent)