In the given example, which amount represents the revenue that is not affected by vacancies when calculating effective gross income?

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Multiple Choice

In the given example, which amount represents the revenue that is not affected by vacancies when calculating effective gross income?

Explanation:
The key idea is separating revenue that depends on occupancy from revenue that comes from services and other sources not tied to how many units are rented. In calculating effective gross income, rent income can be affected by vacancies, because if units sit empty, rent collected drops. Other income from sources like laundry and vending, however, is not tied to whether units are occupied—people still use the facilities and pay, independent of vacancies in the rental units. So the $4,000 from laundry and vending is the revenue not affected by vacancies, which is why it represents the non-occupancy‑related income in this context. Rent amounts (total rent, or per-unit rent) would fluctuate with vacancy, so they’re not the correct non-occupancy revenue here.

The key idea is separating revenue that depends on occupancy from revenue that comes from services and other sources not tied to how many units are rented. In calculating effective gross income, rent income can be affected by vacancies, because if units sit empty, rent collected drops. Other income from sources like laundry and vending, however, is not tied to whether units are occupied—people still use the facilities and pay, independent of vacancies in the rental units.

So the $4,000 from laundry and vending is the revenue not affected by vacancies, which is why it represents the non-occupancy‑related income in this context. Rent amounts (total rent, or per-unit rent) would fluctuate with vacancy, so they’re not the correct non-occupancy revenue here.

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