3. A 50 unit apartment building has 20 – 1bedroom units; 20 – 2 bedroom units; and 10 - 3 bedroom units. The market price for the units is $600, $700, and $850 respectively. There is currently one of each unit vacant. Late fees are $15 and concessions include one month free rent when you sign a one year lease.

Question

3.	A 50 unit apartment building has 20 – 1bedroom units; 20 – 2 bedroom units; and 10 - 3 bedroom units. The market price for the units is $600, $700, and $850 respectively.  There is currently one of each unit vacant.  Late fees are $15 and concessions include one month free rent when you sign a one year lease.

a.	Calculate the monthly GPI: (1pt)

b.	Suppose in September concessions were offered to one of the 3 bedroom units, 6 units paid late, and miscellaneous income was $1000.   Calculate the Effective Gross Income (EGI) (2pts)

Richard · Answer

$34,500