What is the estimated total annual income produced by a property known as?

The estimated total annual income produced by a property is referred to as Effective Gross Income (EGI). EGI represents the total income that a property is expected to generate over a one-year period, accounting for all possible revenue sources, including rental income and other associated income such as laundry facilities, parking fees, or service charges. It also considers potential losses due to vacancies and non-payment of rents, thus providing a realistic figure of income that can be expected.

This concept is vital for property managers and investors as it helps in evaluating the financial performance of the real estate asset and plays a crucial role in determining its value. By analyzing EGI, stakeholders can implement strategic decisions for enhancing revenue and minimizing financial risks associated with real estate investments.

Other terms, while important in real estate, do not describe total annual income produced by a property. Economic life refers to the duration over which an asset remains useful or economically viable. Dower and curtesy involve rights of a surviving spouse to a deceased partner's property. An easement in gross pertains to a legal right to use another’s land for a specified purpose, but does not relate to income generation from property ownership.