Real Estate Math

A Massachusetts property manager charges a leasing fee of one month's rent for finding a new tenant. The monthly rent is $2,800. The manager also charges 8% of monthly rents for management. Over a 12-month lease, what are total fees?

A$5,488✓ Correct
B$2,688
C$5,392
D$3,360

Explanation

Leasing fee = $2,800. Monthly management fee = $2,800 × 8% = $224. Annual management fees = $224 × 12 = $2,688. Total = $2,800 + $2,688 = $5,488.

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