Property Management
A Louisiana apartment building has 50 units with an average monthly rent of $900. If the building maintains a 92% occupancy rate, what is the annual effective gross income (ignoring other income)?
A$540,000
B$496,800✓ Correct
C$414,000
D$450,000
Explanation
Potential gross income: 50 × $900 × 12 = $540,000. Vacancy loss: $540,000 × 8% = $43,200. Effective gross income: $540,000 − $43,200 = $496,800.
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