Real Estate Math

A Washington property manager charges 10% of collected rents on a 20-unit building at $1,350/month per unit, with 95% occupancy. Annual management fee:

A$30,780✓ Correct

B$32,400

C$33,820

D$34,000

Explanation

Units occupied = 20 × 95% = 19 units. Monthly rent collected = 19 × $1,350 = $25,650. Annual = $25,650 × 12 = $307,800. Fee = $307,800 × 10% = $30,780.

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