If they think it should or should not include certain SF then they need to adjust the lease rate they're willing to pay, or revise the leasing exhibit/description to match their expectation of leasable SF.On Wed this week I did an industrial outdoor lease exhibit for 3 Ac gross on a larger 20+ acre site.

When I asked they pointed me to the PMA that states they charge on "all gross receipts" and then said: "Our interpretation is coming from the IRS.

I am adding a bit more context -- The $1k in expenses is coming from 10% of the total gross income ($11k) across all 6 units (3% vacancy + 3% repairs/maintenance + 3% cap ex + 1% misc).

Here are a few strategies that might help:- Leverage Industry Benchmarks: Many investors use a percentage of gross rental income as a quick estimate for operating expenses.

I'm in the Tampa Florida area and we charged 20% of gross profits.  

Is your Adjusted Gross Income over $150k where you can't reduce your income with rental losses?

.: We just this week bought a 6 unit building in a top notch suburban school system for $615,000 with gross rents of $4615, but to make the deal cashflow (barely), had to raise the gross monthly rents to $6570 on 4/1.

For quick math I have a range of each between: 700/yr to 3% of gross income

If the property manager uses a payment app integrated with the property management software to collect rent for the landlord, this is not gross income for the property manager.

You would need an extremely high grossing property under market value on a something like a 5 year lease to profit, and you probably will not profit after startup costs until Year 2 or 3.Do not even think of trying it with 1/2 bedroom apartments or condos nor 2/3 bedroom homes.