Rents should be prorated for the loss of quiet use and enjoyment of the property.  

.- Maint and Repair, 10% of income is a good starting point- Vacancy and credit loss, if the property is run well, 5% is a good starting point- Utilities- Advertising- Legal (evictions, lease advice)- Tax prep- Property management placement fees (usually 50-100% of one month's rent)

I am curious how rental income is calculated in the eyes of the lender and how that plays into the DTI.For example, I know a rental with positive cash flow can report as a loss for tax purposes due to depreciation.

You can write off your losses for tax purposes.

That will depend upon the profit/loss you show.  

A bigger bath would more than outweigh the loss of the shelving unit.

And because these big banks and mortgage companies were planning on people paying the debt they agreed to pay, they have tons of losses, which weighs on every facet of their business.

I was just so upset at the closing, that I didn't think until way after that I could have at least asked for a credit of $4,800 ($200 loss per month for 24 months).

Hello,Is it possible to apply accumulated passive activity loss from prior years' (Real Estate) to a current year if the income from that years real estate activity is less than the income generated by the Real Estate (as an Active RE professional) in the current year?

Assuming the prospective replacement tenant matches all of your screening criteria and can put up the appropriate deposit of his own, no.At that point, you would see 0 loss of income, yet still be penalizing the tenant - notwithstanding any legality questions, that feels like bad business practice.