49. A property manager collects rent on 6 rental units for an owner. Each unit rents for $750 a month. The property manager charges the owner 10% of gross rents for the month and pays the mortgage payment of $1,800. If the manager makes repairs to the property of $275, what will the owner receive this month?
Answer: B
The owner will receive $1,975 this month.
To calculate the amount the owner will receive, we first determine the total gross rent collected from the six units. This is calculated as $750 per unit multiplied by 6, resulting in $4,500. The property manager then deducts their fee of 10%, which amounts to $450, and accounts for the mortgage payment of $1,800 and repair costs of $275, totaling $2,525 in expenses. Subtracting these expenses from the gross rent leaves the owner with $1,975.
A) $1,700
This option is incorrect because it does not take into account the correct calculations of gross rent, property management fees, mortgage payments, and repairs. The calculations indicate that the owner receives more than this amount.
B) $1,975
This is the correct answer as it accurately reflects the final amount the owner receives after all deductions. With total gross rents of $4,500, the property manager's fee of $450, mortgage payment of $1,800, and repairs costing $275, the final subtraction yields $1,975.
C) $3,775
This option is incorrect because it does not consider the property manager's fee and other expenses deducted from the total gross rents. The amount calculated is significantly higher than what the owner receives after all necessary deductions.
D) $2,425
This option is also incorrect as it does not represent the correct total after all deductions. It appears to miscalculate the expenses or include incorrect values, leading to an overestimation of the owner's net income.
Conclusion
The correct answer of $1,975 is derived from a thorough calculation of gross rents, management fees, mortgage payments, and repair costs. All other options fail to accurately reflect the financial transactions involved, resulting in either underestimations or overestimations of the owner's net income. Therefore, option B is definitively the correct choice.