{"ok":true,"canonical_url":"https://dealroom.so/glossary/rental-income","api_url":"https://dealroom.so/api/public/glossary/rental-income","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"rental-income","term":"Rental income","group":"Reading the business","definition":"Money a business receives from leasing out property or equipment it owns to another party. Buyers must determine if this income is stable and truly part of the core business being acquired, or if it's from a separate asset.","what_it_means":"If the business owns commercial real estate and leases a portion of it, that rental income can significantly boost overall cash flow. You need to ensure the rental arrangement is formalized with a lease, at market rates, and ideally long-term. Confirm if this income stream is included in the sale and how it's valued.","url":"https://dealroom.so/glossary/rental-income","official_sources":[],"related":[{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"}],"related_questions":[{"question":"What if the acquired business primarily generates revenue from passive rental income?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-primarily-generates-revenue-from-passive-rental-income"},{"question":"Is a business primarily generating rental income from commercial property eligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/is-a-business-primarily-generating-rental-income-from-commercial-property-eligible-for-a-7"},{"question":"Can an SBA 7(a) loan be used to purchase a business that is primarily engaged in real estate rental activities?","url":"https://dealroom.so/for-lenders/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-that-is-primarily-engaged-in-real-estat"},{"question":"What constitutes \"passive income\" disqualifying a business from 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-passive-income-disqualifying-a-business-from-7-a-loan-eligibility"},{"question":"What if my personal tax returns show inconsistent income or losses from other ventures?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-tax-returns-show-inconsistent-income-or-losses-from-other-ventures"},{"question":"Do businesses that primarily generate passive income qualify for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-businesses-that-primarily-generate-passive-income-qualify-for-an-sba-7-a-loan"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Rental income","url":"https://dealroom.so/glossary/rental-income","source_type":"DealRoom Data"}}