NOTE 10. RENTAL INCOME

During the six months ended June 30, 2013, approximately 91% 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 9% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at June 30, 2013 as follows:

	Commercial Property Leases
2014	$	2,441,000
2015	1,915,000
2016	1,698,000
2017	938,000
2018	589,000
Thereafter	583,000
	$	8,164,000

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 $345,000 and $310,000 for the six months ended June 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 June 30,
2014	$	150,282	6,462	7	6	%
2015	569,499		28,181	10	23	%
2016	680,253		25,894	7	28	%
2017	476,797		16,272	5	19	%
2018	266,841		8,567	7	11	%
2019	0		0	0	0	%
2020	265,032		6,906	3	11	%
2021	64,800		1,800	1	2	%
2022	0		0	0	0	%
2023	0		0	0	0	%
Totals	$	2,473,504	94,082	40	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $515,000 and $381,000 at June 30, 2013 and December 31, 2012. Included in rents receivable at June 30, 2013 is approximately $250,000 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 June 30, 2013 also includes approximately $21,000 representing the deferral of rental concession primarily related to the residential properties.

For the six months ended June 30, 2013 rent at the commercial properties includes approximately $1,100 of amortization of deferred rents arising from the fair values assigned to in-place leases upon the purchase of Cypress Street in Brookline, Massachusetts.