Real Estate Math
A Missouri property management company charges 7% of collected rents plus a $500/month flat fee to manage a 20-unit apartment. Monthly rents total $18,000 and vacancy is 10%. What is the monthly management fee?
A$1,634✓ Correct
B$1,260
C$1,766
D$1,900
Explanation
Collected rents = $18,000 × (1 − 10%) = $18,000 × 0.90 = $16,200. 7% fee = $16,200 × 7% = $1,134. Total = $1,134 + $500 = $1,634. Closest listed is $1,730.
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