Question

Bart owns a rental property that brings in $1,000 a month in rent and has annual net operating expenses of $5,000. What is Bart’s net rental income for this property?

a
$1,000.


b
$5,000.


c
$7,000.


d
$12,000.

Answer 1

c

Annual rent = $1,000 × 12 = $12,000.
Net rental income = $12,000 − $5,000 = $7,000.