For the three months ended March 31, 2020 and 2019, the Company recognized rental income of $473,765 and $518,231, respectively. In 2020, rental income decreased due to the sale of two properties in 2019 and one property in 2020 and a rent decrease related to the Jared Jewelry store in Auburn Hills, Michigan, as discussed below. These decreases were partially offset by additional rent received from one property acquisition in 2020 and a rent increase on one property. Based on the scheduled rent for the properties owned as of April 30, 2020, the Company expects to recognize rental income of approximately $1,635,000 in 2020.
For the three months ended March 31, 2020 and 2019, the Company incurred LLC administration expenses from affiliated parties of $74,308 and $67,882, respectively. These administration expenses include costs associated with the management of the properties, processing distributions, reporting requirements and communicating with the Limited Members. During the same periods, the Company incurred LLC administration and property management expenses from unrelated parties of $31,299 and $46,126, respectively. These expenses represent direct payments to third parties for legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs. These expenses were higher in 2019, when compared to 2020, due to expenses related to the Dick’s Sporting Goods store.
The Company owns a 60% interest in a former Sports Authority store in Wichita, Kansas. On March 2, 2016, the tenant, TSA Stores, Inc., and its parent company, The Sports Authority, Inc., the guarantor of the lease, filed for Chapter 11 bankruptcy reorganization. In June 2016, the tenant filed a motion with the bankruptcy court to reject the lease for this store effective June 30, 2016, at which time the tenant returned possession of the property to the owners. As of March 31, 2020, the tenant owed $29,049 of past due rent, which was not accrued for financial reporting purposes. The owners listed the property for lease with a real estate broker in the Wichita area. While the property was vacant, the Company was responsible for its 60% share of real estate taxes and other costs associated with maintaining the property.