Real Estate Math
A New Mexico property management company charges 8% of collected rents and 1 month's rent as a leasing fee. If the unit rents for $1,100/month and the annual rent is collected in full, what are total annual management fees?
A$1,056
B$2,156✓ Correct
C$1,100
D$2,200
Explanation
Annual management fee = $1,100 × 12 × 0.08 = $1,056. Leasing fee = $1,100. Total annual fees = $1,056 + $1,100 = $2,156.
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