Which method is used to calculate the % of Total Rental Revenue?

The method to calculate the % of Total Rental Revenue focuses on the scheduled base rent as the primary income source from tenants. Scheduled Base Rent represents the fixed rental income that a property owner anticipates receiving before any additional costs or adjustments. Including CPI (Consumer Price Index) increases in this calculation reflects the adjustments to rental rates due to inflationary pressures over time, which can enhance the total rental income achieved.

By incorporating CPI increases into the scheduled base rent, property owners can ensure that their income reflects both the base rent and anticipated increases, providing a more accurate representation of total revenue generated from rental activities. This is essential for financial analysis and projections, as it allows for a better understanding of future income potential in line with economic conditions.

The other choices include operating expenses, maintenance costs, and property taxes, which are expenditures rather than income sources, and do not directly contribute to calculating the total rental revenue. Therefore, they do not align with the objective of determining the total income generated from a property based on the scheduled rent and its adjustments.