How to Model an Increase in Rental Income? CRM:0017796
Hi: How would you model an increase in rental income ( such as from an increase in university enrollment)? Would you run that as an increase in household income? Or show it in the real estate sector as imputed housing? Thanks Steve
Hello, It sounds like there is some concern here about whether or not the rental units are based on property management companies or rentals of home owners. Even if the rental properties are personal owners rather than rental companies or agencies, we would not recommend running it as simply Household Income because rental money won't be spent in the same way as traditional earned income. This is because some portion of that rental income will need to be reinvested in maintaining the rental unit, but in this circumstance, unless the owner has rental units as his sole source of income he likely has no Employment or wages associated to this. The real estate Sector certainly does cover property management activities, so if the units in question are managed by a property manager or real estate group this would be an acceptable Sector, and you could certainly modify the Employment and earnings based on any information that you have. If this information doesn't help, perhaps you could provide us with some additional detail about what you are trying to Model so we may be able to offer additional help.
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