What is gross scheduled income?

Gross scheduled income is all the rent a property would collect at full occupancy for a year, plus any other income, before vacancy and before expenses. Some people call it scheduled gross income or potential gross income. The default house rents for $4,000 a month, so its gross scheduled income is $48,000. Nothing has been subtracted yet.

Gross scheduled income, effective gross income and NOI are three steps on the same chain. The default house has $48,000 scheduled. A 5% vacancy allowance leaves $45,600 of effective gross income. Take out $6,000 of taxes, $2,500 of insurance and 18% of collected income for maintenance, reserves and management, or $16,708 in all, and NOI is $28,892.

It also drives the gross rent multiplier: $500,000 over $48,000 is about 10.4. Listing pro formas lead with it, so check the rent roll and vacancy history before you work down to NOI.