The property manager works under a management agreement between the property owner and the property management...
The property manager works under a management agreement between the property owner and the property management firm. As compensation for his duties, the property manager will receive a management fee. Given the following information, calculate the dollar compensation to the property manager in year 1: potential gross income of the property: $250,000; vacancy and collection losses: 15%; miscellaneous income: $50,000; management fee: 3%. Answer in 4-5 sentences
Homework Answers
Potential gross income of property = 250,000
Less : vacancy and Collection losses 15% = (37500)
(250,000×15%)
Add: miscellaneous income = 50,000
Gross total = 262500
Management fee is 3% on 262500= 7875 (3% × 262500)
7875 is dollars compensation to property manager.
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The property manager works under a management agreement between
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