NOTE 10. RENTAL INCOME

During the nine months ended September 30, 2013, approximately 92% of rental income was related to residential apartments and condominium units with leases of one year or less. The majority of these leases expire in June, July and August. Approximately 8% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at September 30, 2013 as follows:

	Commercial Property Leases
2014	$	2,499,000
2015	1,929,000
2016	1,734,000
2017	903,000
2018	583,000
Thereafter	505,000
	$	8,153,000

The aggregate minimum future rental income does not include contingent rentals that may be received under various leases in connection with common area charges and real estate taxes. Aggregate contingent rentals from continuing operations were approximately $489,000 and $477,000 for the nine months ended September 30, 2013 and 2012, respectively.

The following information is provided for commercial leases.

					Percentage of
	Annual base rent		Total square feet	Total number	annual base rent for
	for expiring leases		for expiring leases	of leases expiring	expiring leases
Through September 30,
2014	$	322,864	17,551	11	13	%
2015	422,746		18,982	7	17	%
2016	623,398		23,082	5	25	%
2017	519,132		17,542	7	21	%
2018	254,932		8,219	6	10	%
2019	123,200		3,850	1	5	%
2020	141,831		3,056	2	6	%
2021	64,800		1,800	1	3	%
2022	0		0	0	0	%
2023	0		0	0	0	%
Totals	$	2,472,903	94,082	40	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $556,000 and $381,000 at September 30, 2013 and December 31, 2012. Included in rents receivable at September 30, 2013 is approximately $311,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis. The majority of this amount is for long-term leases with Staples and Trader Joe’s at Staples Plaza in Framingham, Massachusetts.

Rents receivable at September 30, 2013 also includes approximately $16,000 representing the deferral of rental concession primarily related to the residential properties.

For the nine months ended September 30, 2013 rent at the commercial properties includes approximately $1,600 of amortization of deferred rents arising from the fair values assigned to in-place leases upon the purchase of Cypress Street in Brookline, Massachusetts.