How to calculate Rental Income
518When calculating rental income, do you use the amount before taxes or the amount after taxes?
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REALTORS®
REALTORS®
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Realtor Only
Realtor Only
5 answer(s)
About 1 year ago
When calculating rental income, you typically use the gross rental income before taxes. Gross rental income is the total amount of rent received from your tenants before any deductions for expenses or taxes.
David Smith | Managing Broker
Block & Blvd Realty
(281) 732-3090
david@blokblvd.com
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DislikeAbout 1 year ago
To determine if an applicant qualifies for a rental property, the common practice is to request 2-4 check stubs and calculate the gross income of all check stubs and divide by the number of check stubs.
About 1 year ago
Tracie,
Your question is confusing to me. Not sure if you want to calculate rental income as disclosure for a listing or for tax purposes.
If you want a simple way to calculate income for a single property, you should multiply rent collected by number of months. This is the dollar amount you’d refer to on your income property listing.
If you want to calculate rental income as in actual profit earned for your buyer you’d have to take all rents collected and subtract all expenses such as property taxes, insurance, maintenance, marketing, etc,. Anything left is your actual profit.
I genuinely hope that this is helpful to you.
Good luck,
Antonio V. Lechuga
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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