Real Estate Math

An Oklahoma apartment's market rent is $950/month but the current tenant is paying $875/month under an old lease. What is the monthly loss to lease?

A$65
B$75✓ Correct
C$85
D$95

Explanation

Loss to lease = Market rent - Contract rent = $950 - $875 = $75/month. Loss to lease represents the income the owner is not capturing because the tenant is paying below-market rent.

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