Commercial Property Budget Scenario

You are asked to prepare a budget for a commercial building with three forms of scheduled income and no unscheduled income. At the beginning of the year, the gross potential rental income (GPRI) is $90,000/month. Pass-through expenses generate $1,825/month, increasing to $2,250 in June, and parking fees collected from non-tenants amount to $50/ month (with no change expected). The vacancy rate as of January 1 is 8%. You have been advised that operating expenses will be generally stable totals in four categoriesrepairs and maintenance, $2,875/month; contracted services, $7,500; utilities, $20,000/month; and general operating expenses (including real estate taxes and insurance), $7,000/month.

1. What is the gross potential rental income for the year?
2. What is the total pass-through income for the year?
3. What is the gross potential total income for the year? (Note: Remember to include parking.)
4. What is the vacancy and rent loss for the year?
5. What is the effective gross (EGI) income for the year?