Effective Rental Income (Vacancy & Credit Loss)

Effective rental income (ERI) is the realistic version of your income line: gross potential income minus the two ways rent fails to arrive.

ERI = GPI - vacancy_loss - credit_loss

Vacancy loss is income lost while units sit empty, between tenants or during lease-up. Credit loss (collection loss) is rent charged but never collected: late payers, non-payers, evictions, write-offs.

Example: $60,000 GPI with 5% vacancy ($3,000) and 3% credit loss ($1,800) gives an ERI of $55,200.

Accuracy, not pessimism

Subtracting these losses isn't gloom; it's the difference between a projection that survives contact with real tenants and one that requires perfection. ERI is the income figure that NOI, DSCR, and every cash flow number should be built on.

Where you'll see it in Rescover

Vacancy assumptions on every analysis are yours to set (and to see), and the APOD table carries the deduction from gross potential income through to net cash flow in the open.