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A real estate office handles a 40-unit apartment complex. When the rent is $540 per month, all units are occupied. For each $40 increase in rent, however, an average of one unit becomes vacant. Each occupied unit requires an average of $65 per month for services and repairs. What rent should be charged to obtain a maximum profit.
A real estate office handles a 40-unit apartment complex. When the rent is $540 per month, all units are occupied. For each $40 increase in rent, however, an average of one unit becomes vacant. Each occupied unit requires an average of $65 per month for services and repairs. What rent should be charged to obtain a maximum profit?
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- City Suites has 32 office suites each rented for $500/month with a 15% vacancy rate. The owner has the following expenses; heat $10,700, electric $7,300, water $3,700, marketing, advertising and salaries of $92,000, insurance $5,300, mortgage interest of $27,560, property taxes 13398, and maintenance 9227. What is the property's net operating income? round answer to the nearest dollar.Your client is interested in purchasing for all cash, Garden Park Apartments, a 100-unit apartment complex in Milford, CT. There are 50 one-bedroom units and 50 two-bedroom units. 47 one- bedroom units are currently rented at $1,500 per month and 45 two-bedroom units at $2,100 per month. Market rent for one -bedroom units is $1,700 per month and two-bedrooms are at $2,500per month. All rents are plus utilities.Market vacancy rate is about 5.0%. The property generates laundry income of $20.per month per occupied unit.Operating Expenses are:RE Taxes $2,700 per unit per year, personal property tax is a total of $4,000 per year.Property insurance is $135.00 per unitProperty Management is 5.5% of Gross operating incomePayroll is $48,000 per year; Expense benefits are $11,000 and payroll taxes are 30% of payroll. Repairs and Maintenance is $200 per unit per year.Water is $1,500 quarterly, sewer tax is $2,000 semi-annually, common area electric is $750 per month, Common area Gas Heat is…Janice Huffman has decided to start Rundle Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $760 per month. Labor costs are expected to be $90 per house cleaned and supplies are expected to cost $6 per house. Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost? d.…
- The Bainters want to estimate annual costs for purchasing the home so they can compare them with the costs they estimated for renting. These costs are expenses the Bainters will have only if they purchase instead of rent: monthly mortgage payment $200 per year for HOA fees $1,750 per year for property taxes $1,950 per year for home maintenance $75 per month for water and sewer services $10 per month for trash and recycling services $65 per month for internet $110 per month for homeowners' insurance Approximately how much should the Bainters budget for a year? Your answer should include the total amount the Bainters should budget the calculations or an explanation of how you determined the answerA University of Massachusetts study found that married women who work outside the home do about one hour less of housework per week for every $7500 they earn outside the home. Assume that they hire a housekeeper one time per week for $120; that the $7500 is received in uniform amounts of $625 per month; and, that the housekeeper is paid weekly with these payments made before the $625 is received. What rate of return are they making per week on their “investment” in the housekeeper?Your client is interested in purchasing for all cash, Garden Park Apartments, a 100-unit apartment complex in Milford, CT. There are 50 one-bedroom units and 50 two-bedroom units. 47 one-bedroom units are currently rented at $1,500 per month and 45 two-bedroom units at $2,100 permonth. Market rent for one -bedroom units is $1,700 per month and two-bedrooms rents are $2,500 per month. All rents are plus utilities.Market vacancy rate is about 4.5%. The property generates laundry income of $20.per month per occupied unit. Operating Expenses are:RE Taxes $2,500 per unit per year, personal property tax is a total of $3,100 per year.Property insurance is $145.00 per unit.Property Management is 5% of Gross operating income.Payroll is $50,000 per year; Expense benefits are $12,000 and payroll taxes are 30% of payroll.Repairs and Maintenance is $175 per unit per year.Water is $1,200 quarterly, sewer tax is $800 semi-annually, common area electric is $750 per month, Common area Gas Heat is $560…