Edit Rental Income

Use this page to review and edit all the information for an existing rental income.

The rental income must be linked to the real estate property that produces it. The property controls the income’s owner and limits the dates during which the rental income can be received.

The income source cannot be changed because rental income must remain linked to a property. If this was entered as the wrong income type, delete it and add the appropriate income.

Enter a name that will make the rental income easy to recognize. Each income must have a unique name.

The rental income and its linked property must have the same owner.

If the property you select has a different owner, the MoneyReady App will automatically change the income owner to match the property owner.

For example, rental income from a jointly owned property will be treated as Joint income and divided equally between the spouses.

Select the real estate property that produces this rental income.

The property must already have been entered in REAL ESTATE. If it is not listed, enter the property there before adding or editing its rental income.

If you change the linked property, review the income’s owner, dates and amount to make sure they remain appropriate for the newly selected property.

Enter the dates during which the rental income will be received. Each can be entered as a date, an age or a LIFE EVENT. The resolved date that will be used is shown below each selection.

Rental income cannot begin before the linked property is purchased or continue after it is sold. If necessary, the MoneyReady App will adjust the income’s start and end dates to the property’s purchase and sale dates.

If the property is currently owned and rented, enter the actual date on which the rental income began. If the property is not expected to be sold, leave the end at its default.

If the property’s purchase or sale date is later changed in REAL ESTATE, the TIME MACHINE will keep the rental income within the revised ownership period.

Select the currency in which the rental income is entered. The MoneyReady App will convert the income to Canadian dollars when required using its currency assumptions.

Enter the gross annual rental income before property expenses and income taxes. Annualize the amount even if rent is collected monthly or the property is rented for only part of a year.

The TIME MACHINE will prorate the annual amount according to the income’s start and end dates and the property’s purchase and sale dates.

Do not subtract operating expenses from the rental income entered here. Enter applicable property expenses separately in EXPENSES and link them to the same property.

For rental income that begins in the future, you can enter the annual rent in today’s dollars. The MoneyReady App will increase it to the start date using the applicable inflation assumptions.

If you already know the annual rent that will be received in future dollars, use the OR Amount/year in FUTURE currency field instead. Use one amount field or the other, not both.

Select Index to inflation once started if the rental income is expected to increase with inflation after it begins.

The inflation adjustment multiplier controls how much of the inflation rate is applied:

• 1 applies the full inflation rate.
• 0.5 applies half of the inflation rate.
• 2 applies twice the inflation rate.

The additional yearly adjustment is added to the inflation-based increase. If the rental income is not indexed, this adjustment becomes its entire annual rate of change.

For example, you can enter an additional positive percentage if rent is expected to increase faster than inflation, or a negative percentage if it is expected to decrease.

You can enter an optional note of up to 280 characters. The note is for your reference and does not affect the TIME MACHINE calculations.

Your changes will be validated and saved. The rental income will be linked to the selected property, and its owner and dates will be adjusted when necessary to match the property.