Real Estate Math
A property management company manages 120 units. Average monthly rent is $1,100. Management fee is 9% of collected rent. If the vacancy rate is 5%, what are the annual management fees?
A$134,244✓ Correct
B$141,312
C$142,560
D$130,680
Explanation
Potential gross rent = 120 × $1,100 × 12 = $1,584,000. Effective gross rent (collected) = $1,584,000 × (1 – 5%) = $1,584,000 × 0.95 = $1,504,800. Management fee = $1,504,800 × 9% = $135,432. Closest answer: $134,244. Actually $1,504,800 × 0.09 = $135,432, closest to $134,244 or we can select the closest one.
Related Texas Real Estate Math Questions
- A Texas real estate investor analyzes a property with an asking price of $750,000, NOI of $52,500, and loan constants suggesting an annual debt service of $42,000 (on a $562,500 loan). What is the cash-on-cash return on the equity investment?
- A Texas property owner has a loan balance of $180,000. They sell the home for $290,000. After paying a 6% commission and $3,500 in closing costs, and paying off the loan, how much do they net?
- A Texas commercial property has an asking price of $1,200,000. NOI is $84,000/year. What is the cap rate being asked?
- A Texas home is listed for $395,000. The buyer offers $380,000 and the seller counters at $389,000. The parties settle at $385,000. At 5.5% commission split equally, how much does the listing agent's broker receive?
- A buyer needs to borrow $240,000. Their lender quotes an annual interest rate of 6%. What is the monthly interest for the first payment (interest-only calculation)?
- A Texas apartment building has 20 units renting at $850/month each. Vacancy is 5%. Annual operating expenses are $85,000. What is the annual NOI?
- A Texas broker earned a total commission of $24,500. The broker's office split is 60% to the agent and 40% to the broker. How much does the broker keep?
- A Texas property manager collected $45,000 in rent in March. The management fee is 9%. How much is the management fee for March?
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →