NOTE 10. RENTAL INCOME

During the three months ended March 31, 2014, 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 March 31, 2014 as follows:

	Commercial Property Leases
2015	$	2,690,000
2016	2,464,000
2017	1,859,000
2018	1,275,000
2019	964,000
Thereafter	1,168,000
	$	10,420,000

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 $153,000 and $175,000 for the three months ended March 31, 2014 and 2013 respectively. Staples and Trader Joes, tenants at Staples Plaza, are approximately 30% of the total commercial rental income.

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 March 31,
2015	$	400,427	20,511	12	14	%
2016	222,798		6,307	6	7	%
2017	952,072		36,644	8	32	%
2018	204,433		6,611	5	7	%
2019	418,871		12,467	7	14	%
2020	491,401		17,826	3	17	%
2021	64,657		1,106	1	2	%
2022	64,800		1,800	1	2	%
2023	0		0	0	0	%
2024	157,443		4,771	1	5	%
Totals	$	2,976,902	108,043	44	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $391,000 and $344,000 at March 31, 2014 and December 31, 2013. Included in rents receivable at March 31, 2014 is approximately $221,000 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 March 31, 2014 also includes approximately $70,000 representing the deferral of rental concession primarily related to the residential properties.

For the three months ended March 31, 2014 rent at the commercial properties includes approximately $550 of amortization of deferred rents arising from the fair values assigned to in-place leases upon the purchase of Cypress Street in Brookline, Massachusetts.