In one sentence
The total rent a property would collect at full occupancy and market rents, before vacancy and loss adjustments.
The longer version
Gross potential rent (GPR) is the theoretical ceiling: every unit leased at market rent with no vacancy or concessions. Actual income is GPR minus vacancy, loss to lease, and concessions.
GPR is the starting line of the income underwriting, and the deductions from it, vacancy, loss to lease, are where optimism or realism shows.
Common questions
- How is gross potential rent calculated?
- The rent a property would collect if every unit or space were leased at market or contract rents for the full period, before vacancy and loss.
- Why does gross potential rent matter?
- It is the starting point for the operating statement. Vacancy, concessions and loss to lease are measured against it.
- Is gross potential rent realistic income?
- No. It assumes full occupancy and no loss. Effective gross income, after vacancy and collection loss, is closer to what the property actually earns.
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