A property manager collects $10,000 in rents in July. Operating expenses paid that month total $7,500. What amount should the manager remit to the owner (before management fee)?

Explanation

The manager collects $10,000 in gross rents and pays $7,500 in operating expenses, leaving $2,500 net. However, the question asks what is remitted before the management fee, so the full $10,000 collected is the gross amount — but the manager would remit the net after expenses, which is $2,500. Since the question says 'before management fee' and 'operating expenses paid,' the net remittance is $2,500. Wait — re-reading: the correct answer is $2,500 (net after expenses). The question asks the amount remitted to the owner before management fee is deducted from the net: $10,000 – $7,500 = $2,500.