Which type of income is generally accepted by lenders as eligible income when derived from renting out property?

Rental income is considered generally accepted by lenders as eligible income because it represents a consistent source of revenue that is typically well-documented through lease agreements, rental contracts, and financial statements. Lenders assess rental income based on various factors, including the stability of the rental market, the tenant's payment history, and the property's location.

When evaluating an applicant's financial profile, lenders often look at rental income as a reliable indicator of the applicant's capacity to manage mortgage payments, particularly when the applicant has multiple properties or a significant amount of rental units. This income is assessed over time, often averaging past rental earnings, to project future income potential.

The other types of income, while they are valid forms of income, do not specifically focus on the rental aspect that lenders prioritize when considering mortgage applications.