Property Management
A property management company charges 8% of gross monthly rents as its fee. The property generates $12,500/month in rent. What is the monthly management fee?
A$800
B$1,000✓ Correct
C$1,250
D$1,500
Explanation
8% × $12,500 = $1,000. Management fees are typically calculated as a percentage of collected gross rents, not potential or scheduled rents, though the specific basis should be defined in the management agreement.
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