Glossary term
Gross Potential Rent
Gross potential rent is the most rent a property could collect if every unit were leased at its full asking rent all year.
Gross potential rent, or GPR, is the starting point of a property's income. It is the number of units multiplied by the market or asking rent for each, added up over a year. It assumes full occupancy and no discounts.
Real income falls below GPR because of vacancy, concessions, loss to lease and unpaid rent. Subtracting those items from GPR leads to the rent actually collected.
Comparing collected rent to GPR shows how well a property captures its potential. The gap is a useful guide for where to improve.
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