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RENTAL INCOME 4.37 MA Rental income is money a person (landlord) receives for allowing another person (renter) to use the landlord's property. It includes income from a lease. Income from real estate is earned income if the individual manages the property by collecting rental payments and by providing services to maintain the property. Income from real estate is unearned income if the property is managed by a rental company or other party and the individual has no specific responsibility for the management of the property. Expenses related to the maintenance of the property - including a mortgage payment on the property - must be subtracted from gross rental income. TANF See MA. GC See MA. FS Rental income is money a person (landlord) receives for allowing another person (renter) to use the landlord's property. It includes income from a lease. Treatment of rental payments as earned or unearned income depends on the amount of time the landlord actively engages in managing the rental unit(s): • Under 20 hours per week: the monthly rental payments are countable unearned income • 20 hours per week: the monthly rental payments are countable self-employment earnings and the 20 percent earned income disregard is allowed (see Section 6.3: Income Disregards and Deductions in this Part). Active management of the rental unit(s) includes, but is not limited to, the following: • advertising, • showings to prospective renters, • accounting activities, • inspections, and • cleaning, repairing, and redecorating Whether earned or unearned, count the gross rental income minus expenses. Room and Board 4.37.1 ALL Income from boarders includes all direct payments to the household for the boarder's room, meals, and utilities. MA Count gross boarder income minus expenses as earned income (boarder income is treated as other self-employment income). Expenses deducted must be clearly associated with the rental unit (i.e., expenses the group would incur as a result of housing a boarder). Shelter expenses paid directly by the boarders to a third party are not considered income to the household. Example A boarder is charged $100 per month and must pay the household's electric bill of $50 per month. The boarder pays the electric company directly. The amount considered income from the boarder is $100 per month. TANF See MA. GC See MA.