This is an adaptation to the gross potential income on the pro forma income statement in real estate underwriting. The gross potential income is calculated by adding the rental revenue to other income. General vacancy and credit loss can be utilized to figure out expected credit loss and vacancy loss due to market conditions and a tenant’s negligence to pay.
General Vacancy and Credit Loss
This is an adaptation to the gross potential income on the pro forma income statement in real estate underwriting. The gross potential income is calculated by adding the rental revenue to other income. General vacancy and credit loss can be utilized to figure out expected credit loss and vacancy loss due to market conditions and a tenant’s negligence to pay.
