Which item would be considered Other Income in EGI calculations?

Which item would be considered Other Income in EGI calculations?

• A. Tax refunds
• B. Property tax refunds
• C. Laundry facilities income
• D. Insurance reimbursements

Answer: (C)

In calculating Effective Gross Income, Other Income covers revenue that comes from sources other than rent—things the property earns from its own services or amenities. Laundry facilities income fits this because it’s money the building earns from a non-rental amenity, adding to the income stream beyond tenant rents. Tax refunds and property tax refunds are refunds of amounts already paid; they reduce expenses or are recoveries, not ongoing revenue from operations. Insurance reimbursements are payments received from insurance claims and similarly aren’t regular operating income. So the item that would be counted as Other Income is the laundry facilities income.

In calculating Effective Gross Income, Other Income covers revenue that comes from sources other than rent—things the property earns from its own services or amenities. Laundry facilities income fits this because it’s money the building earns from a non-rental amenity, adding to the income stream beyond tenant rents.

Tax refunds and property tax refunds are refunds of amounts already paid; they reduce expenses or are recoveries, not ongoing revenue from operations. Insurance reimbursements are payments received from insurance claims and similarly aren’t regular operating income. So the item that would be counted as Other Income is the laundry facilities income.