What does a high effective gross income indicate about a property?

A high effective gross income indicates that a property is performing well in terms of its revenue-generating potential. This measurement reflects the total income a property generates after accounting for vacancy and collection losses. When this income is high, it suggests that the property has minimal vacancy, meaning there are few or no unleased units, and that collection losses are low, indicating that tenants reliably pay their rents. This is a strong indicator of effective property management and demand in the market, leading to a healthy financial performance for the property.

The other options do not directly relate to the implications of high effective gross income. High operating expenses or needed repairs typically wouldn’t result in a high effective gross income, and low property taxes do not inherently influence gross income but rather net income levels. Therefore, a high effective gross income is most clearly associated with the efficiency and success of the property's income generation capabilities.