Which of these belongs in other income rather than in the rent roll?
Correct Answer
C) Parking, laundry and vending receipts
Why this is correct: Other income, or ancillary income, is revenue generated from services or amenities beyond base rent, such as parking fees, laundry machines, and vending commissions. Why the other choices are wrong: 'Rent from the building's ground-floor shop' is primary rent, included in the rent roll. 'A tenant's payment of their own electricity' is a tenant expense, not property income. 'The refundable security deposits held' are liabilities, not income. Exam tip: Other income adds to Effective Gross Income; security deposits are liabilities on the balance sheet.
Why This Is the Correct Answer
Why this is correct: Other income, or ancillary income, is revenue generated from services or amenities beyond base rent, such as parking fees, laundry machines, and vending commissions. Why the other choices are wrong: 'Rent from the building's ground-floor shop' is primary rent, included in the rent roll. 'A tenant's payment of their own electricity' is a tenant expense, not property income. 'The refundable security deposits held' are liabilities, not income. Exam tip: Other income adds to Effective Gross Income; security deposits are liabilities on the balance sheet.
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