Effective gross income (EGI) is defined as which of the following?

Effective gross income (EGI) is critical in the field of property management and valuation as it reflects the anticipated income from a property adjusted for potential losses. This involves accounting not only for the total potential income that a property could generate from leases but also for any expected losses due to factors such as vacancies and uncollected rent. By adjusting for these losses, EGI provides a more accurate picture of the income a property owner can realistically expect.

In property management and taxation assessments, relying solely on gross income can be misleading, as it does not factor in the operational realities that may affect income. Therefore, EGI serves as a valuable measure that gives a clearer view of the effective income contributing to a property's financial performance.

The other options do not capture this vital adjustment for expected losses. For instance, total income before expenses does not factor in the financial realities of vacancies or uncollected rent, and remaining income after all expenses is a measure of net income rather than gross income. Total revenue from leasing, while illustrative of potential income, also does not account for the losses that EGI recognizes. Hence, understanding EGI as the anticipated net income adjusted for vacancy and collection losses is essential for accurately assessing property performance and making informed decisions.