Effective Gross Income (EGI)

A park's total potential rent minus vacancy and collection losses, plus other income.

Effective gross income is the dollar amount a park is actually expected to collect after accounting for vacant lots and bad-debt write-offs, plus any non-rent income such as utility billbacks, late fees, application fees, and pet fees. EGI sits between gross potential rent (the theoretical maximum if every lot were occupied and every resident paid in full) and NOI (EGI minus operating expenses). Lenders and underwriters use EGI as the realistic top-line revenue figure when sizing a loan or pricing an acquisition.

Related Terms

Gross Potential Rent (GPR)

The total rent a park would collect if every lot were occupied and every resident paid in full.
Net Operating Income (NOI)

A park's annual revenue minus operating expenses, but before debt service and capex.
Vacancy Loss

Rent lost because a lot is unoccupied or unrented during the period.

See Effective Gross Income (EGI) in action.

Lotly is the property management software built for mobile home parks. See how we handle effective gross income (egi) and 50+ other park-specific workflows on a 30-minute demo.

Schedule a Demo →