Question

1. What is your Gross Potential Revenue? . Your property has six units: Unit # 1 rents for $950 per month and has a scheduled increase in month seven to $1,050 Unit # 2 rents for $1,100 per month Unit # 3 rents for $1,200 per month Units # 4 rents for $1,100 per month, but will vacate at the end of month two. The market rent for this unit when it becomes available will be $1,200 per month Unit # 5 is occupied by the property manager, who pays no rent and whose unit is considered a Non-Revenue Unit." If she did pay rent the rent would be 1,250 Unit # 6 skipped after trashing the unit, but you expect to have it repaired and rented commencing month three for $1,200

Answer 1

Calculation of Gross Potential Rent
Units	Months	Rent per month	Number of months	Gross potential rent (Rent per month x Number of months)
Unit #1	From 1 to 6	950	6	5,700
	From 7 to 12	1,050	6	6,300
					12,000
Unit #2		1,100	12		13,200
Unit #3		1,200	12		14,400
Unit #4	From 1 to 2	1,100	2	2,200
	From 3 to 12	1,200	10	12,000
					14,200
Unit #5		1,250	12		15,000
Unit #6	From 3 to 12	1,200	10		12,000
Gross Potential Rent	80,800