Definition
Gross Scheduled Income (GSI) is the total income a property is scheduled to generate based on its current rent roll and recurring charges—before subtracting vacancy, credit loss, concessions, or collection loss. Think of GSI as “what should be billed†under existing leases and schedules.
What GSI Includes
GSI typically includes contract rent plus recurring, lease-based income items that are reliably charged each period.
- Base rent (in-place/contract rent from the rent roll)
- Recurring fees (common examples: parking, pet rent, storage, RUBS/utility bill-back, amenity fees)
- Other scheduled charges that are contractually billed each month
One-time items (late fees, application fees, NSF fees) are usually treated as other income based on historical collections rather than “scheduled†income.
GSI vs. GPR vs. EGI
These terms are often confused, but they serve different purposes in underwriting:
- Gross Potential Rent (GPR): maximum rent at 100% occupancy (often at market rent).
- Gross Scheduled Income (GSI): income scheduled from the current rent roll and recurring charges (often at in-place rent).
- Effective Gross Income (EGI): income after subtracting vacancy, credit loss, and concessions, plus adding other income assumptions.
How It’s Measured
GSI is commonly computed from the rent roll and fee schedule:
Common formulas
- Monthly GSI = Σ (Contract rent per unit) + Σ (Recurring monthly charges)
- Annual GSI = Monthly GSI × 12
- EGI (simplified) = GSI − (Vacancy & Credit Loss) − (Concessions) + (Other income)
Why It Matters
GSI is a practical baseline for understanding a property’s in-place revenue. It anchors underwriting to what is currently contracted, and it helps investors identify: loss-to-lease, operational leakage, and the gap between “scheduled†vs. “collected†income.
Investor Uses
- Sanity-checking the rent roll: validate billed amounts against leases and fee schedules.
- Measuring collections quality: compare GSI to actual receipts to spot delinquency or chronic loss.
- Forecasting near-term cash flow: in-place rents are often the best predictor for the next 90–180 days.
- Diagnosing value-add upside: separate “market rent upside†from “collection/ops cleanup.â€
Example
A 12-unit property has in-place base rent totaling $18,000/month. Scheduled recurring charges include $900/month in parking and $600/month in RUBS/utility bill-back. Monthly GSI is:
- Monthly GSI = 18,000 + 900 + 600 = $19,500
- Annual GSI = 19,500 × 12 = $234,000
If underwriting applies 5% vacancy/credit loss and 1% concessions, a simplified effective income estimate (before adding other income) would be roughly:
- EGI (rent & scheduled charges only) ≈ 234,000 × (1 − 0.06) = $219,960
Common Pitfalls
- Mixing “scheduled†with “collectedâ€: GSI is billed, not necessarily received.
- Overstating recurring fees: verify that fees are actually in leases and consistently charged.
- Including one-time income: late fees and application fees should usually be treated separately.
- Ignoring delinquency patterns: strong GSI doesn’t help if chronic nonpayment drives high credit loss.
- Bad rent roll hygiene: missing concessions, incorrect charges, or outdated lease terms distort GSI.