Property Management
In Ohio, a 'management fee' for residential property management is typically calculated as:
AA flat annual fee regardless of occupancy
BA percentage of the monthly gross collected rent✓ Correct
CA fixed fee per square foot of the property
DA percentage of the property's appraised value
Explanation
Residential property management fees are typically calculated as a percentage of the monthly gross collected rent (commonly 8–12%). This aligns the manager's compensation with their performance in collecting rent.
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Key Terms to Know
Gross Rent Multiplier (GRM)
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
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