Which of the following is NOT part of the Effective Gross Income formula?

The Effective Gross Income (EGI) formula is a crucial component in real estate finance, as it allows real estate investors and assessors to estimate the income that a property is expected to generate after accounting for losses. The elements that typically contribute to this formula include Potential Gross Income, which represents the income the property could generate if fully rented, and reductions for Vacancy and Collection Loss, which account for expected rental income losses due to vacancies and tenants not paying their rent. Miscellaneous income may also be included, reflecting additional income sources related to the property.

Total debt servicing, however, is not part of the EGI formula. Instead, it pertains to the payments made on loans used to finance the property. This aspect is typically considered when calculating net income or cash flow but is separate from the effective gross income generated by the property. Thus, it does not influence the calculation of the Effective Gross Income, making it clear why this option is correct in identifying what is not included in the formula.