A multifamily unit consists of 10 two-bedroom apartments that rent for $900 per month and 15 three-bedroom apartments that rent

Question

3 years ago

14

A multifamily unit consists of 10 two-bedroom apartments that rent for $900 per month and 15 three-bedroom apartments that rent

for $1,200 per month. The vacancy and collection loss is estimated to be 6%. Management is 5% of effective gross income. What is the annual vacancy and collection loss allowance for this property

Business

1 answer:

kolezko [41] · Answer 1 · 2021-11-12T06:18:56+03:00

kolezko [41]3 years ago

6 0

Answer:Vacancy and collections loss allowance = $1620

Explanation:

10 two bedroom apartments = $900 per month

15 three bedroom apartments = $1200 per month

total rental revenue = 10 x $900 + 15 x $1200 = $27000

Vacancy and collections loss allowance = $27000 x 6/100 = $1620