Real Estate Math

A Colorado property manager charges 8% of collected rent, a $250 leasing fee per new tenant, and $75/month for each property. The manager has 15 properties, each with $1,400/month in rent collected. What are the monthly fees from management fees alone (not leasing fees or flat fees)?

AA. $1,680✓ Correct
BB. $16,800
CC. $168
DD. $2,100

Explanation

Monthly management fees = 8% × (15 properties × $1,400) = 0.08 × $21,000 = $1,680.

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