See Effective Gross Revenue.


Frequently Asked Questions about Effective Gross Revenue (EGR)

EGR stands for Effective Gross Revenue, also known as Effective Gross Income. It reflects the total income a property generates after adjusting for vacancy and credit loss.

Effective Gross Revenue includes total rental revenue plus all other income sources, such as parking or laundry fees, minus general vacancy and credit loss.

EGR = Total Rental Revenue + Total Other Income – General Vacancy & Credit Loss.

EGR provides a more accurate picture of a property’s expected income than gross rent alone. It’s essential for evaluating net operating income (NOI) and investment performance.

Vacancy reduces EGR because it reflects income not collected due to unleased units or uncollected rent. It is typically expressed as a percentage deduction.

No. Gross potential rent assumes 100% occupancy and no credit loss, while EGR reflects actual expected income after adjusting for realistic vacancy and collection issues.



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